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COMMONWEALTH  OF  ^MASSACHUSETTS 

RELATING  TO 


Insurance  ani  Insurance  Conipnies, 


EMBRACING  ALL  THE 


GENERAL  LAWS  IN  FORCE  NOVEMBER  1,  1870 : 


WITH  MARGINAL  REFERENCES  TO  THE  DECISIONS  OF  THE  SUPREME 
JUDICIAL  COURT. 


Consolidated  and  Arranged  ^ \ ’ j I I '()  j l- 

By  JOHN  E.  S A N F O R D ' >’  <■  I ' /.  ' Aj 

Insurance  Commissioner:  ,'iS 

And  in  1870,  with  Additions  from  Subsequent  Legislation,  J? 

By  JULIUS  L.  CLARKE, 

Insurance  Commissioner. 


BOSTON : 


WRIGHT  & POTTER,  STATE  PRINTERS,  No.  79  MILK  STREET, 
(Corner  of  Federal  Street). 

1870. 


f '"*'  ’ 


' 'V;^ 


3 1 e,  <) 

l\/\  ^ S /s^ 


TABLE  OF  CONTENTS 


[See  Index  at  end  of  the  Volume.] 

Page. 

INSURANCE  DEPARTMENT.— APPOINTMENT,  POWERS  AND  DUTIES 

OF  THE  INSURANCE  COMMISSIONER, 1-4 

GENERAL  PROVISIONS  RELATING  TO  INSURANCE  COMPANIES  IN- 
CORPORATED IN  THIS  STATE, 5-22 

Applications  for  Acts  of  Incorporation,  or  for  Alteration  or  Extension  of  Char- 

; ters, 5,  6 

Powers,  Duties  and  Liabilities  of  Insurance  Companies, 6-11 

Taxation  of  Insurance  Companies, 11-13 

Tax  on  Corporate  Shares  or  Franchise, 13-17 

Annual  Statements, IT 

Insolvent  and  Fraudulent  Insurance  Companies, 18,  19 

Dissolution  of  Insurance  Companies, 19-21 

Amendment  or  Repeal  of  Charters, 22 

JOINT  STOCK  INSURANCE  COMPANIES, 23-29 

Investment  of  Capital, 26,  27 

Risl.  and  Policies, 28 

Impaiiment  of  Capital, 29 

MUTUAL  FIRE  INSURANCE  COMPANIES, 30-40 

Assessments, 34-40 

STOCK  AND  MUTUAL  (COMBINED)  INSURANCE  COMPANIES,  . . 41,  42 

, MUTUAL  MARINE,  AND  MUTUAL  FIRE-MARINE,  INSURANCE  COM- 

I PANIES, 43-47 

LIFE  INSURANCE  COMPANIES, 48-52 

INSURANCE  COMPANIES  OF  OTHER  STATES  AND  FOREIGN  COUN- 
TRIES,   53-64 

Conditions  of  Admission  to  do  Business  in  this  State, 53-55 

General  Agent  and  Attorney, 55,  56 

Brokers, 56,  57 

Agents, 57-60 

If  Annual  Statements, 60-62 

) Taxes,  Fees,  &c., 62,  63 

I Miscellaneous  Provisions, 63,  64 

GENERAL  PROVISIONS  RELATING  TO  ALL  INSURANCE  COMPANIES 
DOING  BUSINESS  IN  THIS  STATE,  WHEREVER  CHARTERED 

OR  ORGANIZED, 65-73 

Agents, 65 

Taxes  and  Fees, ' 65,  66 

' Annual  Statements, . . . . . 66-71 

1 Miscellaneous  Provisions, 71-73 

j PREVENTION  OF  FRAUDS  ON  INSURANCE  COMPANIES,  ...  74,  75 

INQUESTS  IN  CASES  OF  FIRE, 76,  77 

I INDEX, 79 


NOTE. 


The  general  laws  of  this  Commonwealth  relating  to  Insurance, 
enacted  prior  to  the  year  1860,  were  consolidated  in  the  General  Stat- 
utes, which  took  effect  in  that  year.  Since  that  time  nearly  fifty 
different  Acts  have  been  passed,  modifying  the  law  in  many  and 
important  respects. 

The  partial  editions  of  these  supplemental  insurance  laws,  being 
exhausted,  it  would  have  involved  much  less  labor  to  collect  and  print 
in  their  consecutive  order,  as  heretofore,  the  several  Acts  as  they  are 
found  in  the  public  statute  books, — leaving  the  reader  to  ascertain  the 
law  as  it  now  stands  by  a comparison  of  their  separate  provisions. 
This,  if  it  does  not  involve  some  skill,  is  troublesome  to  practical  busi- 
ness men.  An  attempt  has  therefore  been  made  to  digest  into  one 
text  all  the  general  insurance  laws  now  in  force. 

Other  provisions  of  the  General  Statutes,  not  found  in  the  chapter 
(fifty-eight)  specially  devoted  to  Insurance  Companies,  but  applying  to 
them  in  common  with  other  corporations,  have  also  been  incorporated. 
The  same  is  true  of  the  statutes  since  enacted. 

It  has  been  found  necessary  in  many  cases  to  change  the  phraseology 
of  the  consolidated  Acts,  by  omitting  formal  and  repeated  words  and 
obsolete  provisions.  A few  verbal  changes  have  also  been  made  of 
purpose.  For  example,  the  wmrd  foreign^  often  inaptly  applied,  both 
in  point  of  sense  and  spirit,  to  com.panies  of  other  States,  has  been 
wholly  disused,  except  in  its  appropriate  connection  with  companies 
of  other  countries. 

The  purpose  has  been  to  present  the  laio  exactly  as  it  now  stands ; 
and  in  order  that  the  legal  accuracy  of  the  text  may  be  easily  tested, 
marginal  references  to  the  consolidated  Acts  are  in  all  cases  given. 

For  the  convenience  of  those  who  desire  the  light  thrown  u})on  the 
statute  law  by  inter})retations  of  the  Supreme  Judicial  Court,  refer- 
ences to  its  decisions,  as  far  as  published,  are  also  made  in  the  margin. 

One  im])ortant  object  will  have  been  gained,  if  those  who  are  willing 
to  violate  the  law  can  no  longer  plead  ignorance  of  its  provisions. 


insurance  laws. 


insurance  department. -appointment,  powers  and 

DUTIES  OE  THE  INSURANCE  COMMISSIONER. 

Section  1.  The  Governor,  by  and  with  the  advice  and  Appoint- 
consent  of  the  Council,  shall  appoint  some  suitable  person  to  H'lV/i' 
be  Insurance  Commissioner,  who  shall,  unless  sooner  re- 
moved by  the  Governor,  hold  his  office  for  the  term  of  three  T.rn,of 
years  from  the  date  of  his  commission  and  until  his  succes- 
sor  is  appointed  and  qualified. 

Section  2.  The  Commissioner  shall  receive  an  annual  and 
salary  of  two  thousand  dollars.  There  shall  also  be  allowed  IFr 
and  paid  out  of  the  fees  received  from  life  insiirauce  'cdm-  a 

panies  as  compensation  for  the  valuation'of  policies  qn  liyesj 
all  the  expenses  incurred  for  actuarial  and  clerical  assistance 
employed  in  making  such  valuation,  and  all  the 'incidental 
and  contingent  expenses  connected  therewith.  One-fifth  of 
the  amount  received,  if  so  much  then  remains  unexpended, 
shall  be  allowed  and  paid  for  the  actuarial  services  of  the’ 
Commissioner : provided,  that  the  amount  so  allowed  and 

paid  in  any  one  year  shall  not  exceed  the  sum  of  three 
thousand  dollars. 

Section  3.  The  Commissioner  may  appoint  a clerk,  who  ci.rk. 
shall  receive  an  annual  salary  of  two  thousand  dollars.  Tlie  saiarp. 
salaries  of  the  Commissioner  and  of  his  clerk  shall  be  paid 
monthly  out  of  the  treasury  of  the  Commonwealth.  is®;!!;'}: 


160 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


ToTisi.and  SECTION  4.  The  Commissioner  shall  risit  and  examme 
insurance  company  incorporated  in  this  State,  when  re- 
by  five  or  more  persons,  each  of  whom  is 
a stockholder  or  creditor,  or  pecuniarily  interested  in  suci 
company  ; and  also  whenever  he  deems  an  examination  nec- 
essary. At  such  times  he  shall  have  free  access  to  its  books 
and  papers,  and  shall  thoroughly  inspect  and  examine  all  its  j 
afi’airs,  and  make  inquiries  such  as  are  necessary  to  ascer-  \ 
■tain  its  condition  and  ability  to  fulfil  its  engagements,  and 
whether  it  has  complied  with  all  the  provisions  of  law  ap- 
plicable to  its  transactions. 

Section  5.  He  may  at  any  time  require  the  agents  o 
Sr  any  insurance  company  not  incorporated  by  the  legislature 
of  this  Commonwealth,  to  exhibit  the  books  kept  by  them 
relating  to  such  agencies,  and  to  make  answer  in  writmg 
and  under  oath  to  all  reasonable  questions  proposed  by  him, 
in  order  to  elicit  a full  statement  of  the  business  done  for 
the  company  represented  by  such  agent.  Any  agent  refus- 
ing or  neglecting  for  thirty  days  to  answer  such  interroga- 
tories shall  be  deemed  not  to  have  complied  with  the  pro- 
visions of  the  laws  of  this  State  ; and  if  he  continues  to  act 
as  such  agent,  he  shall  be  liable  to  a fine  not  exceeding  one 

thousand  dollars  for  each  offence. 

Section  6.  He  may  summon  and  examine  under  oath, 
which  he  may  administer,  the  directors,  officers  and  a^ent 
of  any  insurance  company,  and  such  other  persons  as  he 
thinks  proper,  in  relation  to  the  affairs,  transactions  and  con- 
dition of  such  company.  Whoever  without  justifiable  cause 
refuses  to  appear  and  testify  when  so  required,  or  obstructs 
the  Commissioner  in  the  discharge  of  his  duty,  shall  for  each 
offence  be  punished  by  a fine  not  exceeding  one  thousand 
dollars,  or  by  imprisonment  not  exceeding  one  yeai . 


Pep*-'ty  for 
' ’ to 


Penalty  for 
refusal  to 
testify,  &c. 


161 


POWERS  AND  DUTIES  OP  COMMISSIONER.  3 

Section  7.  When  in  his  opinion  an  insurance  company,  to  report 
its  officers  or  agents,  have  violated  any  law  of  the  State  rela-  ^ g 
tive  to  such  company,  he  shall  forthwith  report  the  facts, 
with  such  statements  and  remarks  as  he  deems  expedient,  to 
the  Secretary  of  the  Commonwealth,  and  he  shall  give  notice  Attomey- 

General  to 

of  the  same  to  the  Attorney-General,  who  shall  at  once  pros-  prosecute, 
ecute  said  company,  officer  or  agent  therefor. 

Section  8.  He  shall  annually  in  September  furnish  to  the  to  furnish 

forms  for  re- 
insurance companies  in  this  State,  and  to  the  agents  known  ^ ^ ^ 

to  him  of  insurance  companies  not  incorporated  in  this  State 

and  doing  business  therein,  two  or  more  printed  copies  of 

the  forms  of  returns  to  be  made  by  them. 

Section  9.  Upon  some  day  in  each  year,  designated  to  value  life 

policies. 

by  him,  he  shall  calculate  the  existing  value  of  all  outstand- 
ing  policies  of  life  insurance  in  companies  authorized  to 
make  insurance  on  lives  in  this  State. 

Section  10.  He  shall  keep  and  preserve  in  a permanent  Tokeeprec- 

^ ^ ^ ^ ordofhis 

form  a full  record  of  his  proceedings,  including  a concise 
statement  of  the  condition  of  each  company  visited  or  ex- 
amined by  him. 

Section  11.  He  shall  annually,  at  the  earliest  practicable  to  make  an- 

^ nual  report. 

date  after  the  returns  are  received  from  the  severel  insur-  lo. 

ance  companies,  make  a report  to  the  legislature  of  the  gen- 
eral conduct  and  condition  of  the  corporations  visited  by  him 
since  his  last  annual  report,  with  such  suggestions  as  he 
deems  expedient,  and  shall  include  therein  an  aggregate  of 
the  calculated  values  of  all  outstanding  policies  of  life  in- 
surance; and  in  connection  therewith  shall  prepare  an  ab- 
stract of  all  the  returns  and  statements  made  to  him  by 
insurance  companies  and  agents.  Such  report  shall  be 
printed  on  or  before  the  first  Wednesday  of  January. 

Section  12.  The  Commissioner  shall  visit  and  examine  to  visit  and 

...  examine 

every  Loan  and  Fund  Association  incorporated  in  tliis  State, 

^ ' Corporations 

G.  8. 69,  §10 


4 INSURANCE  LAWS  OF  MASSACHUSETTS. 

whenever  requested  in  writing  by  five  or  more  persons,  each 
of  whom  is  a stockholder  or  creditor,  or  pecuniarily  inter- 
ested in  said  association,  and  also  whenever  he  deems  it 
necessary ; at  which  times  he  shall  have  free  access  to  its 
books  and  papers,  and  shall  thoroughly  inspect  and  exam- 
ine all  its  affairs,  and  make  all  inquiries  necessary  to  ascer- 
tain its  condition,  its  ability  to  fulfil  all  its  engagements,  and 
whether  it  has  complied  with  all  provisions  of  law  applicable 
to  its  transactions.  Upon  such  examinations  the  Commis- 
sioner shall  have  the  powers  and  perform  the  duties  which  he 
has  and 'performs  in  the  examination  of  insurance  companies. 

wnStSfof  Section  13.  The  Commissioner  shall  annually,  on  orbe- 

ture,  and  vi-  fore  the  first  Wednesday  of  January,  submit  to  the  legislature 

olations  of  ^ , 

law  to  Attor-  a rcport  in  print  of  the  general  conduct  and  condition  of  the 

G.s.  69,  § 11.  g0YQpal  loan  fund  corporations,  with  such  suggestions  as  he 
deems  expedient ; and  if  in  his  opinion  any  such  corporation 
has  violated  any  law  relative  to  such  associations,  he  shall 
forthwith  present  the  facts  to  the  Attorney-General,  who 
udv  osecute  the  association  or  its  officers,  as  the  case  may 
such  violation. 

To  report  re-  SECTION  14.  The  Commissioner  shall  report  annually  to 

C6lptiS^ 

bondf^®  fhe  legislature  all  the  receipts  and  expenditures  of  his  de- 

1867  267  § 9 

’ partment,  and  shall  give  bond  with  sufficient  sureties  to  be 
approved  by  the  Treasurer  in  the  sum  of  ten  thousand 
dollars  for  the  faithful  discharge  of  all  the  duties  of  his 
office. 

[JFbr  other  Powers  and  Duties  of  the  Insurance  Commis- 
sioner^ see  sections  62,  63,  65,  70,  72,  90,  99,  117,  168, 
181,  211,  212,  214  and  215.'] 


GENERAL  PROVISIONS. 


5 


GENERAL  PROVISIONS  RELATING  TO  INSURANCE  COMPA- 
NIES INCORPORATED  IN  THIS  COMMONWEALTH. 

[Applications  for  Acts  of  Incorporation,  or  for  Alteration 
OR  Extension  of  Charters.] 

Section  15.  Persons  intending  to  apply  to  the  legislature 
for  an  act  of  incorporation,  and  corporations  intending  to 
apply  for  an  alteration  or  extension  of  their  charters,  shall 
•give  notice  of  such  intended  application  by  an  advertisement, 
at  least  four  weeks  immediately  preceding  the  session  at 
. which  the  application  is  to  be  made,  in  some  newspaper 
pi  luted  in  the  , county  where  such  corporations  are,  or  are 
intended  to  be,  established  ; such  newspaper  shall  be  desig- 
nated by  the  petitioners  and  approved  by  the  Secretary  of 
the  Commonwealth. 

Section  16.  The  notice  of  an  application  for  an  act  of 
incorporation  shall  specify  the  amount  of  capital  stock  re- 
quired ; and  if.  the  notice  is  for  an  alteration  or  extension 
of  any  charter  already  granted,  it  shall  specifically  state  the 
same. 

Section  17.  Proof  of  the  publication  of  the  notice  re- 
quired in  the  preceding  sections,  may  be  made  by  the  affi- 
davit of  the  printer  or  publisher  of  the  newspaper  in  which 
such  publication  is  made ; which  affidavit  and  the  petition 
to  which  it  relates  shall  be  presented  to  the  general  court 
within  the  first  ten  days  of  the  session.  The  form  of  proof 
of  publication  of  notice  herein  authorized  shall  not  be  con- 
strued to  exclude  any  other  equally  satisfactory  evidence 
thereof. 


Notice  to  be 
given  of  peti- 
tions for 
charters  or 
amendments 
thereof. 

G.  S,  2,  § 10. 


To  specify 
capital  or 
amendment 
asked  for. 

G.  S.  2, § 11. 


Proof  of  no- 
tice. Peti- 
tion when  to 
be  presented. 
G S.  2,  ^ 12. 
1862,  91,  § 3. 


164 


6 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


k 


Section  18.  Whenever  it  appears  upon  satisfactory  evi- 


Unavoidable 
accident, 

toe  pett”*  deuce  under  oath,  that  the  notice  required  to  be  given  by  the 

dS^’^raJl^  fifteenth  section  was  omitted  to  be  given  by  reason  of  any 
1862, 91,  M-  e ./  J 

unavoidable  accident,  without  default  on  the  part  of  the  peti- 


Proviso. 


Waiver  or 
admission  of 


tioner  or  applicant,  or  that  the  subject-matter  of  the  petition 
or  application  did  not  admit  of  such  previous  notice,  the 
notice  shall  be  accounted  sufficient,  if  given  for  the  period  of 
time  therein  named  as  soon  as  such  omission  was  discovered 
by  tlie  petitioner  or  applicant,  or  within  a reasonable  time 
after  such  subject-matter  arose  or  became  known  : provided^ 
such  petition  or  application  is  presented  within  thirty  days 
after  the  first  day  of  the  assembling  of  the  legislature. 

Section  19.  Whenever  any  petition  is  presented  within 


§ 2.  period  of  thirty  days  after  the  assembling  of  the  legisla- 


ture, and  it  appears  upon  satisfactory  proof  that  all  the  par- 
ties having  rights  or  interests  in  the  subject-matter  thereof 
have  waived  notice,  or  have  received  satisfactory  notice  there- 
of, by  writing  signed  by  them,  no  other  or  further  proof  of 
"otice  shall  be  required. 


General  pow- 
ers, duties, 
&c. 

G.S.58,U2. 


To  give  no- 
tice of  organ- 
ization, &c. 
G S.58,  §14. 
5 Allen,  446. 
9 Allen,  483. 


First  meet- 
ing, how 
called 

G.S.58,§  13. 
16  Mass.  94. 

3 Met.  282. 

5 Allen,  446. 


Lr«^.  £RS,  Duties  and  Liabilities  of  Insurance  Companies.] 

Section  20.  Insurance  companies  incorporated  in  this 
State  may  exercise  the  powers  and  shall  be  subject  to  the 
duties  and  liabilities  herein  provided,  so  far  as  consistent 
with  their  respective  charters. 

Section  21.  Every  such  company  shall  give  notice  in 
writing  to  the  Secretary  of  the  Commonwealth,  of  the 
acceptance  of  its  charter  and  organization  under  the  same 
within  one  year  from  the  date  thereof,  or  the  same  shall  be 
void. 

Section  22.  The  first  meeting  of  such  companies  here- 
after organized  shall  be  called  by  a notice  signed  by  one 
or  more  of  the  persons  named  in  the  act  of  incorporation, 


i 


GENERAL  PROVISIONS. 


setting  forth  the  time,  place  and  purposes  of  the  meeting, 
which  shall  be  delivered  to  each  member  seven  days  at  least 
before  the  meeting,  or  published  in  some  newspaper  of  the 
county  in  which  the  company  is  established,  or  if  there  is  no 
such  paper,  in  some  newspaper  of  an  adjoining  county. 

Section  23.  All  matters  proposed  to  be  acted  , upon  at 
any  meeting  of  such  companies  shall  be  specified  in  the  call 
for  the  same. 

Section  24.  When  by  reason  of  the  death,  absence  or 
other  legal  impediment,  of  the  officers  of  any  such  company, 
there  is  no  person  duly  authorized  to  call  or  preside  at  a 
legal  meeting,  any  justice  of  the  peace  in  the  county  where 
the  corporation  is  established  may,  on  a written  application 
of  three  or  more  of  the  members,  issue  a warrant  to  either 
of  them,  directing  him  to  call  a meeting  by  giving  such 
notice  as  was  previously  required  by  law ; and  the  justice 
may  in  the  same  warrant  direct  such  person  to  preside  at 
the  meeting  until  a clerk  is  duly  chosen  and  qualified,  if  no 
officer  is  present  legally  authorized  to  preside. 

Section  25.  The  corporation,  when  so  assembled,  may 
elect  officers  to  fill  all  vacancies,  and  act  upon  such  other 
business  as  may  by  law  be  transacted  at  a regular  meeting. 

Section  26.  All  such  companies,  where  no  other  pro- 
vision is  specially  made,  may  in  their  corporate  name  sue  and 
be  sued,  appear,  prosecute,  and  defend  to  final  judgment 
and  execution  ; have  a common  seal,  which  they  may  alter  at 
pleasure ; and  elect,  in  such  manner  as  they  determine,  all 
necessary  officers,  fix  their  compensation,  and  define  their 
duties  and  obligations. 

Section  27.  Such  companies  may  adopt  by-laws  for  con- 
ducting their  business,  not  repugnant  to  their  respective 
charters  or  the  laws  of  the  State,  but  no  such  company  shall, 
by  any  condition,  restriction,  or  stipulation,  in  its  by-laws  or 


Call  to  spec- 
ify proposed 
busine.«s. 
G.S.58  §15 
14  Gray,  440. 


In  case  of 
disability  of 
officers,  jus- 
tice may  call 
meeting. 

G.  S.  68,  § 5. 
8 Cush  93. 


May  elect 
officers,  &c., 
at  such  meet- 
ing. 

G S.  68,  § 6. 


General  pow- 
ers. Seal. 

G.  S.  68,  § 1. 
10  Mass  91. 
7 -Met.  592. 


By-laws,  Ve- 
nue of  ac- 
tions. Lim- 
itation of 
suits 

G.S.58,  § 16. 
4 Met  2i2. 

6 Gray, 174, 
185,  596 

7 Gray,  61. 


166 


INSURANCE  LAWS  OF  BIASSACHUSETTS. 


I 


By-laws. 

G.  S 68,  § 7. 
1865,  236. 

8 Met,  321. 
See  sects.  78, 
101,  136, 151. 


Penalties  for 
breach  of. 


Vice-presi- 
dent, elec- 
tion, powers 
and  duties 
of. 

1864,  113,  §§ 

1,2 


Secretary 
and  treasur- 
er to  give 
bond 

G.S.58,§  17. 


Directors  to 
furnish 
statement  of 
their  affairs. 
G.  S.  58,  § 19. 


policies,  designate  the  county  in  which  any  suit  shall  be 
brought  against  the  company,  or  limit  the  term  of  commenc- 
ing such  suit  to  a less  period  than  two  years  from  the  time 
when  the  right  thereto  accrues. 

Section  28.  Such  companies  may  by  their  by-laws,  where 
no  other  provision  is  specially,  made,  determine  the  manner 
of  calling  and  conducting  their  meetings  ; the  number  of 
members  that  shall  constitute  a quorum  ; the  mode  of  voting 
by  proxy ; the  mode  of  selling  shares  for  the  non-payment  of 
assessments  ; and  the  tenure  of  office  for  the  several  officers. 
They  may  annex  suitable  penalties  to  such  by-laws,  not  ex- 
ceeding tlie  sum  of  twenty  dollars  for  one  offence ; but  no 
by-law  shall  be  made  by  a corporation  repugnant  to  its  char- 
ter, or  the  laws  of  the  State. 

Section  29.  Any  such  company  may,  by  its  by-laws, 
provide  for  the  election  annually  of  a vice-president,  who 
shall  be  sworn  to  the  faithful  performance  of  his  duties  be- 
fore entering  upon  the  discharge  thereof.  Policies,  checks 
nd  other  instruments,  signed  by  the  vice-president,  shall 
,ave  the  same  force  and  effect  as  if  signed  by  the  president 
or  two  directors.  The  vice-president  shall  perform  such 
other  duties  as  are  prescribed  by  the  by-laws  or  directors. 

Section  30.  The  secretary  and  treasurer  of  such  com- 
panies shall  give  bond  in  such  sum  as  is  required  by  the 
directors,  for  the  faithful  discharge  of  their  respective  duties. 

Section  31.  The  directors  of  such  companies  shall,  when 
required,  furnish  to  the  legislature,  or  to  a committee  there- 
of, or  to  the  Insurance  Commissioner,  a statement  of  their 
affairs,  signed  by  the  president  and  secretary,  and  sworn  by 
them  to  be  correct  according  to  their  best  knowledge  and 
belief,  and  shall  submit  to  an  examination  on  oath  concern- 
ing the  same. 


GENERAL  PROVISIONS. 


9 


Section  32.  Investments  of  the  funds  of  an  insurance 
company  shall  be  made  in  its  corporate  name  ; and  funds  of 
such  companies  as  classify  their  risks,  shall  be  kept  and  in- 
vested separately,  so  as  to  designate  the  assets  belonging  to 
each  class. 

Section  33.  No  member  of  a committee  or  officer  of  a 
mutual  marine,  mutual  fire,  or  mutual  life  insurance  com- 
pany, charged  with  the  duty  of  investing  its  funds,  shall 
borrow  the  same,  or  be  surety  for  such  loans  to  others,  or 
directly  or  indirectly  be  liable  for  money  borrowed  of  the 
company. 

Section  34.  The  Treasurer  of  the  Commonwealth  in  his 
official  capacity  shall  take  and  hold  on  deposit  the  securities 
of  any  insurance  company  incorporated  under  the  laws  of 


Funds  and 
investments, 
how  kept 
and  made. 
G.S.58,  §20. 
See  sect.  113. 


Investing 
officers  not 
to  borrow. 

G.  S.  58,  § 21. 


Treasurer  to 
hold  securi- 
ties in  cer- 
tain cases. 
Income  and 
exchange  of. 

G.S.58,  §63. 


this  State,  which  are  deposited  by  any  such  company  for  the 
purpose  of  complying  with  the  laws  of  any  other  State  in 
order  to  enable  such  company  to  commence  business  in  such 
State.  The  company  depositing  such  securities  shall  have 
the  right  to  receive  the  income  thereof,  and  at  any  time  to 
exchange  the  same  according  to  the  laws  of  the  States  in 
which  they  are  doing  business. 

Section  35.  Every  such  company  may  convey  lands  to  May  convey 

lands. 

which  it  has  a legal  title.  Q-s-  68,  § 8. 

Section  36.  Mortgages  on  real  estate,  held  by  an  insur-  Mortgages 

held  by,  may 

ance  company,  shall  be  liable  to  be  attached  and  taken  and  be  sold  on 

execution. 


sold  on  execution,  in  the  manner  provided  in  sections  c^.s.58,§22. 
seventy-five,  seventy-six  and  seventy-seven,  of  chapter  fifty-  • 
seven  of  the  General  Statutes,  in  respect  to  mortgages  held 
by  banks.  The  secretary  shall  perform  the  duties  therein 
required  of  cashiers  and  clerks. 

Section  37.  Such  companies  shall  have  their  office  in  the  where  to 
city  or  town  specified  in  their  charter ; and  when  they  estab-  oaSst  &"c.’, 

to  specify  lo- 

lish  agencies  in  other  cities  or  towns,  all  signs,  cards,  pam- 


168 


10  INSURANCE  LAWS  OF  MASSACHUSETTS. 

phlets  and  advertisements  exhibited  or  issued  by  them,  shall 
' specify  the  city  or  town  where  the  company  they  represent  is 
located. 

Policies  not  SECTION  38.  No  insurance  Company  incorporated  in  this 

to  be  issued 

b^yond°tfrm  Commonwealtli  shall  issue  any  policy  for  a period  extending 

is64,^277r§§  beyond  the  time  for  which  it  was  incorporated,  unless  its  act 

1)  2. 

See  sect.  218.  of  incorporation  lias  bccn  renewed,  extended  or  continued, 
and  then  not  exceeding  the  time  of  such  renewal,  extension 

Penalty.  OP  contiiiuance.  Any  president,  vice-president,  director,  sec- 
retary or  other  officer  or  agent  of  any  insurance  company, 
who  issues  or  assents  to  the  issuing  of  any  policy  contrary 
to  the  provisions  of  this  section,  shall,  upon  conviction  there- 
of, be  punished  by  a fine  not  exceeding  five  hundred  dollars, 
and  shall  be  liable  in  an  action  of  tort  to  the  holder  of  any 
such  policy,  for  any  damage  he  suffers  or  sustains  by  reason 
of  the  issuing  of  the  same. 

Remedy  in  Section  39.  When  the  officers,  stockholders  or  members 

equity  for  or  , 

cers“&c^*  insurance  company,  or  any  of  them,  are  liable  for  any 

s.68,§i7.  Qj.  fQj,  their  acts  or  omissions  respecting  its  busi- 

''O 

'^ss,  or  when  some  of  them  are  liable  to  contribute  for 

i3i», . r.  ' ic  paid  by  others  on  account  of  such  debts,  acts  or  omis- 
sion.^ the  party  entitled  may,  instead  of  any  remedy  other- 
wise provided,  maintain  a suit  in  equity  in  the  supreme 
judicial  court. 

To  publish  Section  40.  Each  insurance  company  in  this  State  shall, 

list  of  un-  ^ r J 7 

dends**^  once  in  every  five  years,  publish  in  some  newspaper  in  the 

■ ' ’ ‘ city  of  Boston,  and  also  in  some  newspaper,  if  there  is  any, 

in  the  county  where  the  corporation  is  established,  a list  of  all 
dividends  and  balances  which  have  remained  unclaimed  for 
two  years  or  more,  with  the  names  of  the  persons  to  whose 
credit  the  dividends  or  balances  stand ; which  publication 
shall  be  continued  in  three  successive  papers. 


GENERAL  PROVISIONS. 


11 


Section  41.  Nothing  contained  in  the  fifty-fifth  chapter  of 
lie  General  Statutes  relating  to  limited  partnerships,  shall 
authorize  such  partnerships  to  be  formed  for  the  purpose  of 
banking  or  insurance. 

[Taxation  of  Insurance  Companies.] 

Section  42.  Insurance  companies  incorporated  in  this 
State  shall  be  liable  to  be  taxed  by  any  general  law  taxing 
insurance  companies. 

Section  43.  All  fire,  marine,  and  fire  and  marine  insur- 
ance companies,  incorporated  under  the  laws  of  this  Com- 
monwealth, shall  pay  taxes  to  the  Treasurer  of  the  Common- 
wealth, as  follows,  to  wit : — One  per  cent,  per  annum  on  all 
premiums  received  for  insurance  either  in  cash  or  in  notes 
absolutely  payable  by  any  of  such  companies  whether  stock, 
mutual  or  mixed,  and  one  per  cent,  on  all  assessments  made 
by  any  mutual  or  mixed  companies:  provided,  however, 
that  such  taxes  shall  not  be  computed  upon  premiums  re- 
ceived for  insurance  in  other  States,  which  are  subject  to  a 
like  tax  in  the  State  where  received. 

Section  44.  The  tax  upon  insurance  companies  provided 
^or  in  the  preceding  section,  shall  be  levied  upon  all  pre- 
miums and  assessments,  after  deducting  therefrom  unused 
balances  on  notes  taken  for  premiums  on  open  policies,  all 
sums  paid  for  return  premiums  on  cancelled  policies,  and  all 
sums  actually  paid  to  other  insurance  companies  incorporated 
under  the  laws  of  this  Commonwealth,  or  to  the  agents  of 
foreign  companies  located  in  this  Commonwealth,  for  re-in- 
surance on  risks,  for  which  a tax  on  the  premium  would  be 
due  had  no  re-insurance  been  effected : provided,  nothing  in 
this  section  shall  be  so  construed  as  to  admit  of  dividends  in 
scrip  or  otherwise,  in  stock,  mutual  or  mixed  companies,  to 
be  called  return  premiums. 


Limited 
partnerships 
not  to  be 
formed  for 
insurance. 

G.  S.  55,  § 1. 


Liable  to 
taxation, 
G.S.58,§19. 


Tax  on  pre- 
miums and 
assessments. 
1862,224,  §1. 
1865,  283,  k 
18. 

See  sect.  203. 


Proviso.  » 


Tax  on  pre- 
miums and 
assessments 
deflned. 

1868, 165,  §1. 


Proviso. 


170 


12 


Semi-annual 
returns  to 
treasurer. 
1862,  224,  §§ 
6,  9. 


Form  of  re- 
turn defined. 
1868, 165, §2. 


Proviso, 
1868,  283. 


Mass.  Hosp. 
Life  Ins.  Co. 
to  pay  taxes. 
1862,  224, §§ 
3,  4, 12. 

1865,  283,  § 
18. 

See  sect.  203. 


INSURANCE  LAWS  OF  MASSACHUSETTS. 

Section  45.  Every  such  insurance  company  shall  semh 
annually,  on  or  before  the  second  Mondays  of  May  and  No- 
vember, make  a return  to  the  Treasurer  of  the  Commonwealth, 
which  shall  be  signed  and  sworn  to  by  its  president  and  sec-  ■ 
retary,  and  shall  express  the  full  amount  of  all  premiums 
received  for  insurance  by  said  company,  either  in  cash  or 
notes  absolutely  payable,  and,  if  it  be  a mutual  company,  or 
have  a mutual  department,  of  all  its  assessments  made,  dur- 
ing the  six  months  last  preceding  the  first  day  of  the  month 
of  May  or  November,  in  which  said  return  is  required. 

Section  46.  Insurance  companies,  in  making  their  re- 
turns under  the  preceding  section,  shall  state  the  full  amounts 
of  premiums  and  assessments  received,  and  deduct  there- 
from the  sums  paid  for  re-insurance,  return  premiums,  and 
unused  balances  provided  for  in  section  forty-four,  and  the 
tax  shall  be  computed  on  the  net  amount  thus  actually  re- 
ceived by  said  companies  for  the  six  months  preceding  the 
time  of  making  up  said  return : provided^  nothing  in  this 
section  or  in  section  forty-four  shall  be  construed  to  repeal 
or  modify  the  existing  statute,  which  exempts  insurance  com- 
panies from  paying  a tax  “ upon  premiums  received  for  in- 
surance in  other  States  which  are  subject  to  a like  tax  in  the 
State  where  received.” 

Section  47.  The  Massachusetts  Hospital  Life  Insurance 
Company  shall  pay  to  the  Treasurer  of  the  Commonwealth 
upon  all  moneys  and  property  in  the  possession  or  charge  of 
said  company  as  deposits,  trust-funds,  or  for  purposes  of  in- 
vestment, at  the  time  for  which  the  return  of  said  company, 
required  by  the  following  section,  is  made,  the  same  rate*  of 
tax  as  is  imposed  upon  or  paid  by  savings  banks  or  institu- 
tions for  saving  on  account  of  deposits.  All  property  taxed 

* Under  existing  laws,  one-lialf  of  one  per  cent,  per  annum,  payable, 
one-balf  of  said  tax  semi-annually. 


GENERAL  PROVISIONS. 


13 


ander  this  section  shall  be  otherwise  exempt  from  taxation 
"for  the  current  year  in  which  the  tax  is  paid. 

Section  48.  The  Massachusetts  Hospital  Life  Insurance 
' Company  shall  semi-annually,  on  or  before  the  second  Mon-  -^9/  ’ 
days  of  May  and  November,  make  a return  to  the  Treasurer 
of  the  Commonwealth  which  shall  be  signed  and  sworn  to 
by  a majority  of  its  board  of  directors,  and  shall  include  the 
full  amount  of  all  moneys  and  property,  in  detail,  in  the 
possession  or  charge  of  said  company  as  deposits,  trust-funds, 
or  for  the  purposes  of  investment,  on  the  first  day  of  May  or 
November,  in  which  said  return  is  required. 

Section  49.  The  taxes  herein  before  provided  for,  shall 
be  paid  semi-annually  within  ten  days  after  the  first  Mon-  gee  sect.  203. 
days  of  June  and  December,  each  payment  to  be  an  assess- 
* ment,  by  the  treasurer,  of  one-half  the  annual  percentage. 


Section  50. 


Every  corporation  neglecting  to  make  return  Penauie^for 
as  herein  before  required,  shall  forfeit  fifty  dollars  for  each 


turns,  or 
false  returns. 


- Mr*  11  false  returns 

day  of  such  neglect ; and  any  corporation  that  willuliy  1862, 224, § 9 
makes  false  statements  in  any  such  return  shall  be  liable  to 
pay  a fine  of  not  less  than  five  hundred  nor  more  than  five 
thousand  dollars. 


[Tax  on  Corporate  Shares  or  Franchise.] 

Section  51.  Every  insurance  company  chartered  by  this 

Commonwealth,  and  having  a capital  stock  divided  into  holders,  «&c. 

i XI  j p 1865,283,§3. 

shares,  shall  annually,  between  the  first  and  the  tenth  day  ot 
May,  return  to  the  Tax  Commissioner,^  under  the  oath  of  its 
treasurer,  a complete  list  of  its  shareholders,  with  tlieir 
places  of  residence,  the  number  of  shares  belonging  to  each 
on  the  first  day  of  May,  the  amount  of  the  capital  stock  of 
the  corporation,  its  place  of  business,  the  par  value  and  the 

* The  Treasurer  of  the  Commonwealth  is  ex  officio  Tax  Commis- 
sioner. 


14 


INSURANCE  LAWS  OP  MASSACHUSETTS. 


market  value  of  the  shares  on  said  first  day  of  May.  Sue] 
return  shall,  in  the  case  of  stock  held  as  collateral  security 
state  not  only  the  name  of  the  person  holding  the  same,  bu^^ 

To  return  also  the  name  of  the  pledger  and  his  residence.  The  return 

real  estate. 

shall  also  contain  a statement  in  detail  of  the  real  estate 
owned  by  such  company,  and  subject  to  local  taxation  within.\ 
the  Commonwealth,  and  the  location  and  value  thereof.  The 
company  shall  also  return  the  amount,  value  and  location  of 
all  real  estate  owned  by  it  and  subject  to  local  taxation  with- 
out the  Commonwealth. 

TaxCommis-  SECTION  52.  The  Tax  Commissiouer  shall  ascertaiii,  from 

sioner  to  as- 

of’ghlreland  returns  or  otherwise,  the  true  market  value  of  the  shares 

i865tS'§4.  of  each  such  company,  and  shall  estimate  therefrom  the  fair 
cash  valuation  of  all  of  said  shares  constituting  the  capital 
stock  of  such  company  on  the  first  day  of  May  next  preced- 
ing, which  shall  be  taken  as  the  true  value  of  its  corporate 
franchise  for  the  purposes  of  taxation. 

And  of  real  He  sliall  also  ascertaiii  and  determine  the  value  and 

estate. 

amount  of  all  real  estate  owned  by  each  such  company,  and 
subject  to  local  taxation,  and  to  the  deduction  hereinafter 
presided ; and  for  this  purpose  he  may  take  the  amount  or 
value  at  which  such  real  estate  is  assessed  at  the  place  where 
the  same  is  located  as  the  true  amount  or  value  ; but  such 
local  assessment  shall  not  be  conclusive  of  the  true  amount 
or  value  thereof. 

Amoun^of  Section  53.  Every  such  company  shall  annually  pay  a 

is65,283!§  5.  upou  its  corporatc  franchise  at  a valuation  thereof  equal 
to  the  aggregate  value  of  the  shares  in  its  capital  stock,  as 
determined  in  the  preceding  section,  after  making  the  deduc- 
tion provided  for  in  this  section,  at  a rate  determined  by  an 
apportionment  of  the  whole  amount  of  money  to  be  raised 
by  taxation  upon  property  in  the  Commonwealth  during  the 
same  current  year,  upon  the  aggregate  valuation  of  all  the 


173 


GENERAL  PROVISIONS. 


15 


cities  and  towns  in  the  Commonwealth  for  the  preceding 
f year : provided,  that  the  amount  of  tax  assessed  upon  polls  proviso. 


3 the  preceding  year,  may  be  taken  as  the  amount  of  poll-tax 
' to  be  deducted  from  the  whole  amount  to  be  raised  by  taxa- 
tion, for  the  purpose  of  ascertaining  the  amount  to  be  raised 
by  taxation  upon  property.  From  the  valuation,  ascertained  Deduction, 
and  determined  as  aforesaid,  there  shall  be  deducted  an 
amount  equal  to  the  value,  as  determined  by  the  Tax  Com- 
missioner, of  the  real  estate  of  such  company  subject  to  local 
taxation,  wherever  situated. 

Section  54.  In  case  the  value  of  the  real  estate  located  valuation  of 


within  the  Commonwealth,  of  any  such  company  as  deter-  m^slk)n2^“’ 
mined  by  the  Tax  Commissioner,  is  less  than  the  value  as  unless,  &c. 

’ 1865, 283, § 6. 

determined  by  the  assessors  of  the  city  or  town  where  such 
real  estate  or  machinery  is  taxable,  said  Commissioner  shall 
notify  the  company  of  such  determination,  and  if  said  com- 
pany does  not,  withiii  one  month  from  the  date  of  such 
notice,  make  application  to  said  assessors  for  an  abatement, 
and  does  not,  in  case  of  the  refusal  of  said  assessors  to  grant 
an  abatement,  forthwith  prosecute  an  appeal  in  accordance 
with  the  provisions  of  chapter  eleven  of  the  General  Statutes, 
and  give  notice  thereof  to  the  Tax  Commissioner,  such  de- 
termination shall  be  conclusive  upon  said  company.  The 
Tax  Commissioner  may  appear  before  the  county  commis- 
sioners and  be  heard  upon  any  appeal  made  to  them,  and 
the  decision  of  the  county  commissioners  shall  be  conclusive 
as  to  the  value. 

Section  55.  The  Tax  Commissioner  shall,  as  soon  as  Noticeof 


may  be  after  the  first  Monday  in  August,  notify  the  treasurer 
of  each  such  company  of  the  amount  of  its  tax,  ascertained  ^ 

as  aforesaid,  to  become  due  and  payable  to  the  Treasurer  of 
the  Commonwealth  within  thirty  days  from  the  date  of  such 
notice : provided,  that  it  shall  not  be  due  and  payable  earlier  when  paj- 


real  estate 


amount  of 


16 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


Right  of  ap- 
peal. 


Board  of  ap- 
peal. 

1865,  283,  § 


Hearing  and 
decision. 


Officers  and 
books  may 
be  examined. 
1865,  283,  § 

17. 


Penalty  for 
neglect  to 
make  re- 
turns. 

1865,  283,  § 
14. 

1866,  291,  §1. 


Treasurer 
may  sue  for 
taxes. 


\ 

than  the  first  dav  of  November.  Such  notice  shall  also  stat( 

*'  r 

that  within  ten  days  after  the  date  thereof,  the  company  mai 
apply  for  a correction  of  said  tax,  and  be  heard  thereon  be- 
fore the  board  of  appeal  hereinafter  established. 

Section  56.  The  Treasurer  and  Auditor,  together  with' 
one  member  of  the  Council  to  be  named  by  the  Governor,  , 
shall  constitute  a board  of  appeal,  to  which  board  any  party 
aggrieved  by  the  decision  of  the  Tax  Commissioner  upon 
any  matter  arising  under  the  five  preceding  sections,  may 
apply  within  ten  days  after  notice  of  such  decision.  Upon 
such  appeal  said  board  shall,  as  soon  as  may  be,  give  a hear- 
ing to  such  party,  and  shall  thereupon  decide  the  matter  in 
question,  which  decision  shall  be  final. 

Section  57.  Every  such  company  shall,  when  required, 
submit  its  books  to  the  inspection  of  the  Tax  Commissioner, 
and  its  treasurer  and  directors  to  examination  on  oath  in  re- 
gard to  all  matters  affecting  the  determinations  which  are  to 
be  made  by  said  Commissioner. 

Section  58.  Any  such  company  neglecting  to  make  re- 
turn according  to  the  provisions  of  section  fifty-one,  or 
refusing  or  neglecting,  when  required  thereto,  to  submit  to 
the  examinations  provided  for  in  the  preceding  section,  shall 
forfeit  two  per  cent,  upon  the  par  value  of  its  capital  stock  ; 
which  penalty  may  be  recovered  by  an  action  of  tort,  brought 
in  the  name  of  the  Commonwealth,  either  in  the  county  of 
Suffolk  or  in  the  county  where  the  company  is  located.  Any 
company  failing  to  make  said  return  shall  also  be  liable,  on 
application  of  the  Tax  Commissioner  therefor  to  any  of  the 
justices  of  the  supreme  judicial  court,  to  injunction  restrain- 
ing said  corporation  and  the  agents  thereof  from  the  further 
prosecution  of  its  business,  until  such  return  is  made.  If 
any  such  company  fails  to  pay  the  tax  required  by  section 
fifty-three,  the  Treasurer  of  the  Commonwealth  may  forth- 


GENERAL  PROVISIONS. 


17 


with  commence  an  action  of  contract  in  his  own  name,  as 
treasurer,  for  the  recovery  of  the  same,  with  interest.  Said 
penalty  may  also  be  enforced,  and  said  tax  may  also  be  col- 
lected by  information  brought  in  the  supreme  judicial  court 
at  the  relation  of  the  Treasurer  of  the  Commonwealth,  and 
upon  such  information  the  court  may  issue  an  injunction 
restraining  the  further  prosecution  of  the  business  of  the 
company  named  therein,  until  all  taxes  due  or  penalties 
incurred  as  aforesaid  are  paid,  with  interest  and  costs. ^ 
Section  59.  No  taxes  shall  be  assessed  in  any  city  or 
town  for  State,  county  or  town  purposes,  upon  the  shares  in 
the  capital  stock  of  such  companies,  for  any  year  for  which 
they  pay  the  tax  herein  imposed  ; but  nothing  contained 
herein  shall  be  construed  to  exempt  the  owners  of  shares  in 
the  capital  stock  of  any  such  company  from  liability  to  taxa,- 
tion  for  school-district  and  parish  purposes. 

Section  60.  The  tax  herein  imposed  upon  any  such  com- 
pany, shall  not  affect  nor  prevent  the  imposition  and  collec- 
tion of  any  other  tax  now  authorized,  or  that  may  hereafter 
be  authorized,  upon  any  especial  privilege,  franchise  or  busi- 
ness, enjoyed  or  exercised  by  such  company. 

[id?r  other  provisions  in  detail  regarding  the  taxation  of 
the  corporate  shares  or  franchise  of  Insurance  Companies  in 
common  loith  other  joint-stock  corporations,  see  chapter  383  of 
the  Acts  of  1865,  and  chapter  52  of  the  Acts  g/1867.] 


Further 

remedies. 


Shares  ex- 
empt from 
local  taxes, 
except,  &c. 
1865,  283,  § 
15. 

1866,196,  § 1. 


Tax  here  im- 
posed not  to 
prevent  oth- 
er taxation. 
1865,  283,  J 
18. 


[Annual  Statements.] 

Section  61.  Every  insurance  company  incorporated  in  companies  to 

make  and 

this  State  shall,  on  or  before  the  fifteenth  day  of  January  in  gtatemeX^ 
each  year,  transmit  to  the  Insurance  Commissioner,  and  file  ?867,?67',^f§ 

2,  3. 

See  sects 

* Chapter  52  of  tlic  Acts  of  18G7  also  authorizes  the  Treasurer  to  207-214 
issue  a warrant  for  the  collection  of  such  taxes,  and  limits  the  remedy 
of  the  company  for  the  exaction  of  an  alleged  illegal  tax,  to  petition  to 
the  supreme  judicial  court. 


176 


18 


Proceedings 
against  in- 
solvent com 
panics. 

G.  S.  58,  § 6 
1862,  131. 


Injunction 
may  issue. 


Receivers. 

9 Allen,  329 


INSURANCE  LAWS  OF  MASSACHUSETTS. 

in  his  office,  a statement  of  its  business,  standing  and  affairs, 
in  the  form  prescribed  or  authorized  by  law,  and  adapted  to 
the  business  done  by  such  company,  signed  and  sworn  to  by 
the  president  and  secretary,  and  made  out  for  the  year  end- 
ing on  the  preceding  thirty -first  day  of  December. 

[Insolvent  and  Fraudulent  Insurance  Companies.] 

Section  62.  If  upon  examination  the  Commissioner  is 
of  opinion  that  a company  is  insolvent,  or  that  its  condition 
is  such  as  to  render  its  further  proceedings  hazardous  to  the 
public  or  to  those  holding  its  policies,  he  shall  apply  to  a 
justice  of  the  supreme  judicial  court  to  issue  an  injunction 
restraining  such  company,  in  whole  or  in  part,  from  further 
proceeding  with  its  business  until  after  a full  hearing  can  be 
had.  It  shall  be  discretionary  with  such  justice  either  to 
issue  said  injunction  forthwith,  or  to  give  previous  notice  to 
the  company,  and  to  cause  a hearing  -to  be  had  on  complaint 
and  answer  or  otherwise,  as  in  ordinary  proceedings  in  equity, 
before  determining  whether  an  injunction  shall  be  issued. 
If  issued  forthwith,  without  such  previous  notice  and  hear- 
ing, he  may,  after  a full  hearing  of  all  parties  interested,  dis- 
solve or  modify  the  same  or  make  it  perpetual.  He  may 
make  such  orders  and  decrees  as  may  be  needful  to  suspend, 
restrain  or  prohibit,  the  further  continuance  of  the  business 
of  the  company ; and  may  appoint  agents  or  receivers  to 
take  possession  of  the  property  and  effects  of  the  company, 
subject  to  such  rules  and  orders  as  are  from  time  to  time 
according  to  the  course  of  proceedings  in  equity  prescribed 
by  the  court  or  a justice  thereof  in  vacation. 

[ For  proceedings  by  and  against  Insolvent  Companies  in 
the  Courts  of  Insolvency^  see  Gen.  Sts.,  cli.  118,  sections 
113-124.] 


j 


GENERAL  PROVISIONS. 


19 


Section  63.  Whenever  upon  examination  the  Commis-  injunction 
sioner  is  of  opinion  that  any  insurance  company  incorporated 
under  the  laws  of  this  Commonwealth  has  exceeded  its  pow- 
ers, or  failed  to  comply  with  any  of  the  rules,  restrictions  or 
conditions  provided  by  law,  he  may  apply  to  a justice  of  the 
supreme  judicial  court  to  issue  an  injunction  restraining  such 
company  in  whole  or  in  part  from  further  proceeding  with 
its  business  until  after  a full  hearing  can  be  had ; and  the 
provisions  of  the  preceding  section  are  hereby  extended  to 
proceedings  under  this  section. 

[Dissolution  of  Insurance  Companies.] 

Section  64.  When  a maiority  in  number  or  interest  of  May  be  dis- 

*'  solved  on  pe- 

the  members  of  an  insurance  company  incorporated  in  this  SJr? 
State  desire  to  close  its  concerns,  they  may  apply  by  petition  7^Gray,’ii9,‘ 
to  the  supreme  judicial  court,  setting  forth  in  substance  the  ^ Gray,  34. 
grounds  of  their  application,  and  the  court,  after  due  notice 
to  all  parties  interested,  may  proceed  to  hear  the  matter, 
and  for  reasonable  cause  decree  a dissolution  of  the  corpora- 
tion. Corporations  so  dissolved  shall  be  deemed  and  held  ^ 
extinct  in  all  respects  as  if  their  charters  had  expired  by 
their  own  limitation. 

Section  65.  The  charters  of  all  fire  insurance  compa-  suspension 

of  business 

nies,  which,  either  by  the  vote  of  their  members,  the  neglect  for  one  year 

^ T J ’ O to  annul 

of  their  officers,  , or  in  obedience  to  injunctions  from  the  18^1^249,  ^ 

1 2 

supreme  judicial  court,  have  ceased,  or  hereafter  cease,  for  7aiay,  119. 
the  period  of  one  year,  to  transact  the  business  for  which 
they  were  established,  shall  become  extinct  in  all  respects  as 
if  they  had  expired  by  their  own  limitation.  The  supreme 
judicial  court  shall  have  authority,  upon  the  application  of 
the  Insurance  Commissioner,  or  any  person  interested,  to 
fix,  by  decree,  the  time  within  whicli  such  companies  shall 
settle  and  close  their  concerns. 


178 


20 


INSURANCE  LAWS  OP  MASSACHUSETTS. 


To  continue 
for  three 
years,  to 
close  con  • 
cerns. 

G S.  68,  § 36. 
16  Mass.  245. 
1 Greenl.  79. 


Receivers 
may ’be  ap- 
pointed. 
Powers  and 
duties  of. 

G.  S.  68,  § 37. 
7 Met.  341, 
695. 


Equity  juris- 
diction of  S. 
J.  Court. 

G.  S.  68,  § 38. 


Receivers  to 
pay  debts 
and  distri- 
bute sur- 
plus. 

G.S.68,  §39 
1 Gray,  387. 
9 Allen,  329 


Section  66.  Insurance  companies  whose  charters  expire 
by  their  own  limitation,  or  are  annulled  by  forfeiture  or 
otherwise,  shall  nevertheless  be  continued  bodies  corporate 
for  the  term  of  three  years  after  the  time  when  they  would 
have  been  so  dissolved,  for  the  purpose  of  prosecuting  and 
defending  suits  by  or  against  them,  and  of  enabling  them 
gradually  to  settle  and  close  their  concerns,  to  dispose  of 
and  convey  their  property,  and  to  divide  their  capital  stock ; 
hut  not  for  the  purpose  of  continuing  the  business  for  which 
they  were  established. 

Section  67.  When  the  charter  of  an  insurance  company 
expires  or  is  annulled,  or  the  corporation  is  dissolved  as  pro- 
vided in  section  sixty-four,  the  supreme  judicial  court  on 
application  of  a creditor,  stockholder^  or  member,  at  any 
time  within  said  three  years,  may  appoint  one  or  more  per- 
sons to  be  receivers  or  trustees  to  take  charge  of  its  estate 
and  effects,  and  collect  the  debts  and  property  due  and  be- 
longing to  it,  with  power  to  prosecute  and  defend  suits  in 
the  name  of  the  corporation  or  otherwise,  to  appoint  agents 
. .nder  them,  and  do  all  other  acts,  which  might  be  done  by 
such  corporation  if  in  being,  that  are  necessary  for  the  final 
settlement  of  the  unfiiiislied  business  of  the  corporation. 
The  powers  of  such  receivers  may  be  continued  as  long  as 
the  court  deems  necessary  for  said  purposes. 

Section  68.  The  court  shall  have  jurisdiction  in  equity 
of  the  application  and  of  all  questions  arising  in  the  proceed- 
ings thereon ; and  may  make  such  orders,  injunctions,  and 
decrees  therein,  as  justice  and  equity  require. 

Section  69.  The  receivers  shall  pay  all  debts  due  from 
the  company,  if  the  funds  in  their  hands  are  sufficient  there- 
for, and  if  not,  they  shall  distribute  the  same  ratably  among 
the  creditors  who  prove  their  debts  in  the  manner  directed 
by  any  order  or  decree  of  the  court  for  that  purpose.  If 


GENERAL  PROVISIONS. 


21 


there  is  a balance  remaining  after  the  payment  of  the  debts, 
the  receivers  shall  distribute  and  pay  it  to  and  among  those 
who  are  justly  entitled  thereto  as  having  been  stockholders 
or  members  of  the  company,  or  their  legal  representatives. 

Section  70.  All  accounts  rendered  by  receivers  of  insur- 
ance companies  appointed  as  aforesaid  to  the  supreme  judi- 
cial court,  shall  be  referred  to  the  Insurance  Commissioner, 
who  shall  carefully  examine  the  same  and  report  thereon  to 
the  court,  and  the  court  may  make  all  such  orders  and  de- 
crees in  the  premises  as  to  law  and  justice  appertain. 

Section  71.  Whenever  in  the  opinion  of  the  Commis- 
sioner, further  efforts  to  collect  an  assessment  will  not  afford 
substantial  relief  to  creditors,  he  shall  certify  the  fact  to  the 
supreme  judicial  court,  which,  after  public  notice  and  hearing 
of  the  parties  interested,  may  order  the  receivers  to  make  a 
final  report. 

Section  72.  Receivers  of  insurance  companies  shall  re- 
port to  the  Insurance  Commissioner  annually,  in  such  form 
as  the  Commissioner  prescribes,  on  or  before  the  fifteenth 
day  of  November,  and  as  much  oftener  as  he  directs.  Such 
reports,  or  abstracts  therefrom,  shall  be  incorporated  into  the 
annual  report  of  the  Commissioner  to  the  legislature. 

Section  73.  The  compensation  of  the  receivers  and  their 
expenses,  other  than  costs  of  court,  shall  not  exceed  twenty- 
five  per  cent,  of  assessments  collected  and  five  per  cent,  of 
the  proceeds  of  any  assets  of  the  company  other  than  pre- 
mium notes  : provided^  however^  that  in  the  case  of  receivers 
appointed  prior  to  the  fourteenth  day  of  May  in  the  year 
eighteen  hundred  and  sixty-four,  the  amount  of  compensa- 
tion to  be  allowed  to  them  for  services  rendered  prior  to 
said  date  shall  rest  in  the  discretion  of  the  supreme  judicial 
court. 


Accounts  of 
receiTers  to 
be  referred  to 
Commission- 
er. 

1864,308,  § 3. 


S.  J Court 
may  order 
final  report 
on  certificate 
of  Commis- 
sioner. 
1864,308,  § 2. 


Receivers  to 
report  to 
Commission- 
er. 

1864,308,  § 1. 


Compensa- 
tion of  re- 
ceivers. * 
1864,308,  § 4. 


Proviso. 


180 


22 


Ch.arters 
granted  after 
March  11, 
1831,  may  be 
amended  or 
repealed. 
G.S.68,  § 41. 
6 Cush.  424. 
4 Gray,  234. 


k 


INSURANCE  LAWS  OF  MASSACHUSETTS. 

[Amendment  or  Repeal  of  Charters.] 

Section  74.  Every  act  of  incorporation  passed  after  the 
eleventh  day  of  March  in  the  year  one  thousand  eight  hun- 
dred and  thirty-one,  shall  be  subject  to  amendment,  altera- 
tion or  repeal,  at  the  pleasure  of  the  legislature  ; but  the 
corporation,  notwithstanding  such  repeal,  shall  be  subject  to 
the  provisions  of  sections  sixty-six  and  sixty-seven  ; and 
such  amendment,  alteration  or  repeal  shall  not  take  away 
or  impair  any  other  remedy  which  may  exist  by  law  consist- 
ently with  those  sections  against  the  corporation,  its  mem- 
bers or  officers,  for  any  liability  previously  incurred. 


181 


JOINT  STOCK  COMPANIES.  23 


JOINT  STOCK  INSURANCE  COMPANIES. 

Section  75.  Every  insurance  company  with  a specific 
capital  shall  annually  choose  by  ballot  from  the  stockholders 
of  the  company  resident  within  this  State,  not  less  than  five 
directors,  who  shall  hold  office  for  one  year  and  until  others 
are  chosen  and  qualified  in  their  stead.  Such  directors  when 
elected  and  notified  shall,  before  they  are  qualified  to  act, 
declare  their  acceptance  in  writing  to  the  secretary  of  the 
company. 

Section  76.  Not  less  than  four  directors  shall  constitute 

(t.  h.  58,  §§ 

a quorum;  and  all  questions  shall  be  decided  by  a majority 
of  those  present.  They  shall  choose  annually,  by  ballot,  a 
president,*  secretary,  and  such  other  officers  as  the  rules 
direct.  Vacancies  in  any  office  may  be  filled  by  the  direc-  vacancies, 
tors  or  by  a meeting  of  stockliolders  called  for  the  purpose. 

Section  77.  The  president  shall  be  chosen  from  tlie  board 
of  directors.  He  shall  preside  at  all  meetings  of  the  stock-  oaTh'^o?^ 

office. 

holders  and  directors,  but  when  absent  a president  g.s.58,  §28. 

pore  may  be  chosen  as  the  meeting  determines.  The  pres- 
ident and  secretary  shall  annually  be  sworn. 

Section  78.  The  shares  of  every  insurance  company  Par  value  of 
organized  after  the  tenth  day  of  May,  in  the  year  eighteen  p'rSs.  Re- 
hundred and  sixty-seven,  and  having  a capital  stock  divided  cience^ofciec- 

tions. 

into  shares,  shall  be  fixed  at  one  hundred  dollars  each. 

Each  share  shall  lie  entitled  to  one  vote.  Proxies  may  be 
authorized  in  writing.  No  officer  shall  vote  as  proxy,  and 
no  stockholder  shall,  either  in  person  or  by  proxy,  cast  more 

* For  tlie  election,  powers,  and  duties  of  Vice-President,  see  section 
29,  page  8. 


Choice  of  di- 
rec tor.s. 

To  accept  in 
writing. 

G.S.58,§27. 


2i 


INSUEANCE  LAWS  OP  MASSACHUSETTS. 


Executors, 
&c.,  may 
vote. 

G S.  68.  i 11. 
9 Cush.  192. 


Duties  of 
secretary. 

G.  S.58  § 28. 
10  Mass.  476. 
8 Pick.  90. 


Company  to 
register 
names.  &c., 
of  stockhold- 
ers 

1864,201,  § 1. 


List  open  to 
inspection. 
G.S.68,  §10. 


Penalty. 


Record  of 
transfers  to 
be  kept  in 
this  State. 

G S 68.  5 12, 
8 Pick.  90. 


than  thirty  votes.  The  record  of  the  votes,  vrhether  cast  in 
person  or  by  proxy,  made  by  the  secretary  or  clerk  of  the 
company,  shall  be  evidence  of  all  such  elections. 

Section  79.  An  executor,  administrator,  guardian  or 
trustee,  shall  represent  the  shares  or  stock  in  his  hands  at 
all  meetings  of  the  corporation,  and  may  vote  as  a stock- 
holder. 

Section  80.  The  secretary  shall  keep  a record  of  the 
votes  of  the  stockholders  and  of  the  directors  ; a list  of  the 
stockl'.olders  and  number  of  shares  standing  in  the  name  of 
each ; a record  of  all  transfers  of  shares  ; of  all  policies 
issued  by  the  company,  and  of  all  assignments  and  transfers 
thereof;  and  such  additional  books  as  the  president  and 
directors  require. 

Section  81.  Every  such  company  shall  register  the  names 
and  residences  of  all  its  stockholders,  and  all  changes  there- 
in of  which  it  is  notified  ; shall  issue  no  certificate  of  stock 
to  a stockholder,  or  purchaser  of  a share,  until  he  informs 
the  corporation  of  his  actual  place  of  residence  ; and  shall 
pay  DO  dividend  to  a stockholder  whose  actual  place  of  resi- 
ce  is  unknown,  or  has  become  uncertain,  until  he  informs 
corporation  thereof. 

Section  82.  The  list  of  stockholders  shall  at  all  times, 
upon  written  application  by  any  stockholder,  be  exhibited  for 
his  inspection.  If  the  officer  keeping  such  list  refuses  so  to 
exhibit  tlie  same,  he  shall  forfeit  fifty  dollars  for  each  offence. 

Section  83.  All  records  of  transfers  of  stock  in  companies 
incorporated  by  the  sole  authority  of  this  State,  shall  be  made 
and  kept  within  the  State.  The  officer  of  every  company 
wliose  duty  it  is  to  record  such  transfers,  shall,  at  the  time 
of  his  appointment,  be  a resident  within  the  State  ; and  when 
he  ceases  to  be  a resident  the  office  shall  become  vacant. 


183 


JOINT  STOCK  COMPANIES.  25 

Section  84.  In  transfers  of  stock  as  collateral  security,  Transfers  as 

collateral, 

the  debt  or  duty  which  such  transfer  is  intended  to  secure,  ^ 
shall  be  substantially  described  in  the  deed  or  instrument  of  ^ 
transfer.  A certificate  of  stock  issued  to  a pledgee  or  holder 
of  such  collateral  security,  shall  express  on  the  face  of  it 
that  the  same  is  so  holden ; and  the  name  of  the  pledger 
shall  be  stated  therein,  who  alone  shall  be  responsible  as  a 
stockholder. 

Section  85.  The  treasurer,  cashier  or  other  officer  who  Record  of 

transfers  to 

has  the  lawful  custody  of  the  records  of  transfers  of  shares, 

upon  the  written  request  of  a creditor  of  the  general  owner  9 cuS’.  iM.'  ^ 

of  stock  pledged  or  transferred,  shall  exhibit  to  him  the 

record  of  such  transfer ; and  in  case  of  refusal  and  of  loss 

to  the  creditor  by  reason  thereof,  the  corporation  shall  be 

liable  for  the  amount  of  the  loss. 

Section  86.  Persons  holding  stock  in  a corporation  as  Executors, 

° ^ &c.,  not  lia- 

executors,  administrators,  guardians  or  trustees,  shall  not 

G S 68  § 18 

be  personally  subject  to  any  liabilities  as  stockholders  ; but  9 bush.  192.' 
the  estates  and  funds  in  their  hands  shall  be  liable  in  like 
manner  and  to  the  same  extent  as  the  testator,  intestate, 
ward  or  person  interested  in  the  trust  fund,  would  be  if 
they  were  respectively  living  and  competent  to  act  and  held 
the  stock  in  their  own  names. 

Section  87.  Special  meetings  of  the  stockholders  may  be  special  meet- 
ings, how 

called  by  the  directors  when  they  think  proper ; and  they  ^ 29. 
shall  call  sucli  meetings  on  the  written  application  of  the 

14  Gray,  440. 

owners  of  one-fifth  part  of  the  capital,  or  of  twenty  stock- 
holders, setting  forth  the  purposes  of  the  meeting. 

Section  88.  At  each  annual  meeting  the  directors  shall  Directors  to 

make  annual 

cause  to  be  furnished  to  the  stockholders  a statement  of  the  ®ESoidys° 
condition  of  the  company,  and  in  making  dividends  shall  not  (lends. 

^ ® ^ G.S.58,  §34. 

consider  any  part  of  the  premium  money  divisible  until  the 
risks  for  which  the  same  was  paid  have  absolutely  been  ter- 
4 


26 


INSURANCE  LAWS  OP  MASSACHUSETTS. 


Capital  stock 
when  and 
how  paid  in. 
Certificates 
and  policies 
not  to  issue 
until,  &c. 
G.S.58,  § 30. 
G.  S. 68, § 9 
See  sect.  137 


Policies  not 
to  issue  un- 
til certificate 
of  Commis- 
sioner is  ob- 
tained. 
Examination 
of  capital. 
Oath  of  di- 
rectors. 

Fee. 

G S.  58, § 30. 
1867,267,  § 4. 
See  sect.  137. 


Capital  stock 
how  to  be  in- 
vested. 

G.S.  58,  §31. 
See  sect.  32. 


minated.  But  in  making  up  their  annual  statement  they 
shall  be  required  to  charge  the  company  only  such  portions 
of  the  cash  or  notes  received  on  policies  which  are  unex- 
pired, as  would  be  required  to  re-insure  all  outstanding 
risks. 

Section  89.  The  capital  stock,  unless  otherwise  specially 
provided,  shall  be  paid  in  cash  within  twelve  months  from 
the  date  of  the  charter.  No  certificates  of  full  shares  or 
policies  shall  be  issued  until  the  whole  capital  is  paid  in  ; 
nor,  unless  specially  authorized,  shall  any  shares  be  issued 
for  a less  amount  to  be  actually  paid  in  on  each  share,  than 
the  par  value  of  the  shares  first  issued. 

Section  90.  No  policy  shall  be  issued  until  a certificate 
from  the  Insurance  Commissioner  has  been  obtained  author- 
izing such  company  to  issue  policies.  The  Insurance  Com- 
missioner shall  examine  the  capital,  and  a majority  of  the 
directors  shall  make  oath  that  the  money  has  been  paid  in 
by  the  stockholders  towards  payment  of  their  respective 
shares,  and  not  for  any  other  purpose,  and  that  it  is  in- 
tended that  the  same  shall  remain  as  the  capital  of  the  com- 
pany, to  be  invested  as  required  by  the  laws  of  this  Com- 
monwealth. Every  insurance  company  incorporated  in  this 
Commonwealth  shall  pay  into  the  treasury,  for  the  examina- 
tion required  by  this  section,  the  sum  of  thirty  dollars. 

[Investment  of  Capital.] 

Section  91.  The  capital  stock  shall  be  invested  in  the 
stocks  of  the  United  States,  or  of  this  State,  or  of  any  city 
or  town  in  this  State,  or  in  any  of  the  banks  thereof,  or  in 
any  railroads  thereof  which  are  completed  and  paid  for  and 
the  franchises  of  which  are  not  pledged  or  mortgaged,  or  in 
bonds  of  railroad  corporations  in  this  State  ; or  it  may  be 
loaned  on  mortgages  of  real  estate  therein,  or  on  pledges  of 


JOINT  STOCK  COMPANIES. 


27 


any  of  the  stocks  or  bonds  named  in  this  section  : provided, 
that  no  insurance  company  shall  own  more  than  one-fourth 
of  the  capital  of  any  one  bank,  nor  invest  in  nor  loan  on  the 
stocks  and  bonds  both  included  of  any  one  railroad  company, 
more  than  one-tenth  of  its  own  capital,  nor  in  the  aggregate 
shall  the  investment  in  and  loan  on  all  railroad  property 
exceed  one-fifth  of  its  capital.  Not  more  than  half  of  its 
capital  shall  be  loaned  on  mortgage  of  real  estate,  and  not 
more  than  one-tenth  part  of  the  capital  actually  existing  of 
any  company  shall  be  invested  in  a single  mortgage. 

Section  92.  Insurance  companies  may  make  investment 
of  their  capital  and  other  funds  in  the  stock  of  any  banking 
association  located  in  this  Commonwealth  and  organized 
under  the  provisions  of  an  act  of  congress  entitled  “ An  Act 
to  provide  a national  currency,  secured  by  a pledge  of  United 
States  stocks,  and  to  provide  for  the  circulation  and  redemp- 
tion thereof,”  approved  on  the  twenty-fifth  day  of  February, 
in  the  year  eighteen  hundred  and  sixty-three  : provided, 
however,  that  no  insurance  company  shall  own  or  hold  as 
collateral  security  more  than  one-fourth  of  the  capital  of  any 
one  of  such  banking  associations.  Any  insurance  company 
which  makes  any  investment  in  the  stock  of  any  banking 
association,  as  authorized  by  this  section,  shall  continue  sub- 
ject to  all  the  limitations  and  restrictions  contained  in  the 
preceding  section,  except  as  herein  otherwise  provided. 

Section  93.  If  any  investment  or  loan  is  made  in  a man- 
ner not  authorized  by  law,  the  directors  making  or  author- 
izing the  same  shall  be  personally  liable  to  the  stockholders 
for  any  loss  occasioned  thereby ; but  insurance  companies 
chartered  by  this  State  now  doing  business,  shall  not  be 
compelled  to  change  any  investment  that  was  originally 
legally  made. 


May  be  in- 
vested in 
stocks  of  na- 
tional banks. 
1864,  29,  §§ 
1,2. 


Directors  li- 
able for  un- 
authorized 
investments. 
G.S.58,§31. 
See  sect.  39. 


28 


INSURANCE  LAWS  OP  MASSACHUSETTS. 


[Risks  and  Policies.] 

Section  94.  Companies  thus  organized  may  insure  ves- 
S°l.68!rs2.  sels,  freights,  goods,  money,  effects,  and  money  lent  on 
bottomry  or  respondentia,  against  the  perils  of  the  sea  and 
other  perils  usually  insured  against  by  marine  insurance ; 
and  direlling-houses  and  other  buildings,  merchandise  and 
other  personal  property,  against  loss  by  fire,  according  to 
their  respective  charters. 

policies  shall  be  signed  by  the  president 
secretary;  or  in  the  absence  of  the  president  by  two 
21,,  218.  directors,  and  in  the  absence  of  the  secretary  by  a secretary  i 
pro  tempore.  Policies  signed  by  the  vice-president  shall  'l 
have  the  same  force  and  effect  as  if  signed  by  the  president  ' 
or  two  directors. 

Section  96.  No  stock  company  shall  hold,  on  any  one 
gT‘k “ exceeding  one-tenth  part  of  the  capital  existing, 
after  deducting  all  losses,  claims,  liabilities  and 
132,142.  debts  due  from  the  company.  When  the  capital  has  been 

reduced  by  losses,  or  from  any  other  cause,  the  amount  j 
thereafter  to  be  taken  on  any  one  risk  shall  correspondingly 
be  reduced  to  the  limitation  herein  prescribed.  If  the  1 
directors  allow  more  to  be  insured  on  any  one  risk,  they 
shall  be  liable  for  a loss  on  any  amount  exceeding  one-tenth  ,(• 
the  ex,isting  capital.  1,  \\ 

aodXr  Section  9T.  If  any  company  is  under  liability  for  losses  l\ 
actually  sustained  equal  to  the  capital,  and  the  president  J 
du'cctors  knowing  it  make  insurance  or  assent  thereto,  i 
S personally  liable  for  the  loss  if  any  under  such 

Isl'il  charter  permits  the  capital  stock  to  , 

Sg.ec.i.89;  be  paid  by  instalments,  if  the  capital  is  lessened  by  losses  1 
before  all  instalments  are  paid  in,  each  stockholder  shall  be  | 
liable  for  the  instalments  unpaid  on  his  shares  at  the  time  i 


JOINT  STOCK  COBIPANIES. 


29 


of  such  loss ; and  no  dividend  shall  be  made  until  the  capital 
is  restored  to  its  original  amount. 

[Impairment  of  Capital.] 

Section  98.  Whenever,  after  setting  aside  a sum  equal 
to  the  premiums  for  the  unexpired  term  on  existing  risks, 
the  cash  assets  of  any  fire  insurance  company  with  a specific 
capital  do  not  amount  to  more  than  three-fourths  of  its  orig- 
inal capital,  the  company  shall,  by  assessing  the  stock  for 
the  difference,  repair  its  capital  to  the  original  amount. 
Shares  on  which  such  assessment  is  not  paid  within  sixty 
days  after  demand  upon  the  owner  thereof,  shall  be  forfeit- 
able  and  subject  to  be  cancelled  by  a vote  of  the  directors, 
and  new  shares  may  be  issued  to  make  up  the  deficiency. 

Section  99.  Any  insurance  company  with  a specific  cap- 
ital which  does  not,  within  three  months  after  receiving 
notice  from  the  Insurance  Commissioner  that  its  capital  is 
legally  subject  to  repair  as  aforesaid,  satisfy  him  that  it  has 
been  fully  restored  to  its  original  amount,  with  a reserve  of 
premium  sufficient  to  re-insure  all  outstanding  risks,  shall 
be  proceeded  against  according  to  the  provisions  of  section 
sixty- two. 


When  cap- 
ital is  re- 
duced, stock 
to  be  assess- 
ed. 

1863,  249,  §§ 
7,  8. 

See  sects. 
198,  216. 


If  capital  is 
not  repaired 
after  notice. 
Commission- 
er to  proceed 
against  com- 
pany. 

1863,  249,  §§ 
6,9. 


188 


30 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


MUTUAL  FIRE  INSURANCE  COMPANIES. 


Directors, 
election  and 
term  of 
ofiBce. 

G.S.  58.  f 43 
1862.181,  § 5. 
14  Gray,  440. 


Members. 

Annual 

meetings. 

Totes. 

G S.58,H3. 
1870.349.4  7. 
2 Gray,  543. 


Proxies. 


Section  100.  Every  mutual  fire  insurance  company  shall 
annually  elect  by  ballot  not  less  than  seven  directors,  citizens 
of  this  State,  and,  after  the  first  election,  members  of  the 
company,  who  shall  manage  and  conduct  the  business  there- 
of. Xo  director  in  any  mutual  fire  insurance  company  shall 
cease  to  be  such  during  the  year  for  which  he  was  elected, 
on  account  of  the  cancelling  of  any  policy  held  by  him. 

Section  101.  Every  person  insured  by  a mutual  fire  in- 
surance company  shall  be  a member  of  the  company,  and 
shall  be  notified  of  the  time  and  place  of  holding  the  annual 
meetings  of  said  companies  by  a written  notice  or  by  an 
imprint  upon  the  back  of  each  policy,  receipt  or  certificate 
of  renewal,  in  the  following  form,  to  wit : By  virtue  of 

this  policy  the  assured  is  hereby  notified  that  he  is  a mem- 
ber of  the  Insurance  Company,  and  that  the  annual 

meetings  of  said  company  are  holden  at  its  home  office  on 
the  day  of  in  each  year,  at  o’clock,  .” 

The  blanks  shall  be  duly  filled  in  making  the  aforesaid 
imprint,  and  the  same  shall  be  deemed  a sufficient  notice  as 
herein  provided.  Xo  one  member  shall  be  allowed  more  j 
than  five  votes  in  person.  Members  may  vote  by  proxies 
dated  and  executed  within  six  months  and  returned  and 
recorded  on  the  books  of  the  company  three  days  previously 
to  the  meeting  of  the  company  at  which  the  same  are  used  , 
but  no  person  shall  be  allowed  by  proxy  or  otherwise  to  cast 
more  than  twenty  votes ; and  no  paid  officer  shall  vote  as 
proxy  for  any  absent  member. 


189 


MUTUAL  FIRE  COMPANIES. 

Section  102.  The  directors  of  every  corporation  which 
becomes  a member  of  any  mutual  company,  may  authorize 
one  or  more  of  the  stockholders  of  such  corporation  to  repre- 
sent the  same  in  all  meetings  of  such  company ; and  such 
representatives  shall  vote  and  be  eligible  to  the  office  of 
director  in  the  company. 

Section  103.  The  directors  of  every  such  company  shall 
annually  choose  by  ballot  one  of  their  number  as  president,* 
a secretary  and  treasurer,  who  shall  annually  be  sworn,  and 
a record  of  the  oath  shall  be  entered  upon  the  books  of  the 
company. 

Section  104.  Not  less  than  five  directors  shall  constitute 
a quorum,  and  all  questions  shall  be  decided  by  a majority 
of  those  present.  Vacancies  in  any  office  may  be  filled  by 
the  directors  until  the  next  annual  election,  or  by  a new 
election  at  a meeting  called  for  that  purpose.  Special  meet- 
ings of  the  members  may  be  called  when  ordered  by  the 
directors,  and  the  directors  shall  call  such  meetings  when 
requested  in  writing  so  to  do  by  any  twenty  members. 

Section  105.  The  secretary  shall  keep  true  records  of  the 
meetings  of  the  corporation  and  of  the  directors,  and  of  all 
votes  passed  by  them ; and  record  a copy  of  all  policies 
^ issued  by  such  company,  and  all  assignments  or  transfers  of 
the  same,  when  properly  assented  to,  which  record  shall  be 
open  to  the  inspection  of  any  persons  interested  therein. 

Section  106.  No  policy  shall  be  issued  by  a mutual  fire 
insurance  company  incorporated  subsequently  to  the  twenty- 
seventh  day  of  March,  in  the  year  eighteen  hundred  and 
fifty-eight,  until  the  sum  of  two  hundred  and  fifty  thousand 
dollars  has  been  subscribed  to  be  insured  and  entered  on  the 
books  of  the  company.  The  policies  issued  and  the  deposit 

* For  the  election,  powers  and  duties  of  Vice-President,  see  section 
29,  page  8. 


31 


Corporations 
how  repre- 
sented. 

G.S.  58, 5 47. 


Directors  to 
choose  presi- 
dent, &c. 
Oath  of 
office. 

G.  S.  58, 4 44. 


Quorum  of 
directors. 
Vacancies. 
Special  meet- 
ings. 

G.S  58,  §45. 
14  Gray,  440. 
8 Allen,  27, 
217. 


Secretary  to 
keep  records. 
G.  S.  58,  § 44. 


«250,000  to 
be  sub- 
scribed be- 
fore policies 
are  issued. 
G.S. 58,  §58. 


¥ 


190 


32 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


Where  may 
insure. 


G.S.  58,§  57. 


Single  risks 
limited. 

G. S.58,  § 55. 


Eisks  limited 
to  three - 
fourths  of 
value. 

G jS.  58.  § 52. 
4 Met.  206. 
10  Met.  211. 
See  sects. 
217,  218. 
Certain  poli- 
cies to  create 
a lien. 

G.  S.  58,  § 52. 
1862,181,  § 4. 
6 Cush.  448. 
12  Gray,  114. 


Proviso. 


Proceedings 
to  enforce 
lien. 


notes  given  for  said  insurance,  which  .notes  shall  not  exceed 
double  the  amount  paid  as  cash  premium,  shall  be  of  the 
same  date. 

Section  107.  Mutual  fire  insurance  companies  incorpo- 
rated in  this  State  previously  to  the  third  day  of  July,  in  the 
year  eighteen  hundred  and  fifty-six,  may  issue  policies  on 
any  property  included  in  the  terms  of  their  charters,  situated 
in  the  New  England  States  and  the  State  of  New  York ; but 
such  companies  incorporated  after  that  date  shall  not  insure 
property  situated  without  the  limits  of  this  State. 

Section  108.  No  mutual  fire  insurance  company  shall 
contract  for  insurance  on  any  one  risk  for  a greater  amount 
than  they  intend  to  retain ; nor  with  the  view  or  intention 
of  re-insuring  any  part  thereof. 

Section  109.  No  policy  shall  be  issued  on  the  mutual 
plan  for  a greater  amount  than  three-fourths  of  the  value  of 
the  property  insured. 

Section  110.  Every  policy  issued  by  a mutual  fire  insur- 
ance company  previously  to  the  thirtieth  day  of  April,  in  the 
year  eighteen  hundred  and  sixty-two,  shall  create  a lien*  on 
the  personal  property,  and  on  any  building  insured  and  the 
land  under  the  same,  for  securing  the  payment  of  the  deposit 
note,  or  other  liabilities,  or  any  sums  assessed  upon  the 
same : provided^  that  the  extent  of  the  liability  and  the 
intention  of  the  company  to  rely  upon  the  lien  are  set  forth 
on  the  face  of  the  policy.  Upon  the  alienation  of  the  prop- 
erty to  a bona  fide  purchaser,  the  lien  shall  cease  as  to  all 
losses  which  thereafter  occur,  unless  the  policy  is  continued 
by  consent  of  the  purchaser  and  the  company.  If  it  becomes 
necessary  to  resort  to  such  lien  for  the  payment  of  the  liabil- 
ities secured  thereby,  the  treasurer  shall  demand  payment 

* The  lieu  is  abolished,  as  regards  all  policies  issued  on  or  after  said 
date,  by  chapter  181,  section  4,  of  the  Acts  of  1862. 


s 


MUTUAL  FIRE  COMPANIES. 


33 


from  the  insured,  and  also  from  the  tenant  in  possession,  or 
the  person  having  possession  of  the  personal  property,  setting 
forth  in  writing  the  sum  due ; and  in  case  of  non-payment, 
the  company  may  sue  and  levy  the  execution  upon  the  prop- 
erty or  estate.  The  officer  making  the  levy  may  sell  the 
whole  or  any  part  thereof  by  auction,  and  apply  the  proceeds 
in  the  same  manner,  and  the  owner  shall  have  the  same 
right  to  redeem  as  in  the  sale  of  an  equity  of  redemption  of 
real  estate. 

Section  111.  A person  holding  property  in  trust  may 
effect  insurance  on  such  property  in  any  mutual  fire  insur- 
ance company  incorporated  in  this  State,  and  for  that  pur- 
pose may,  as  such  trustee,  assume  the  liabilities  and  create 
all  the  liens  upon  the  property  so  insured  which  other  per- 
sons, on  becoming  members  of  such  insurance  companies, 
assume  and  create.  He  shall  not  be  liable,  in  his  individual 
capacity,  upon  such  contract  of  insurance. 

Section  112.  Every  member  of  a mutual  company  shall, 
at  the  expiration  of  his  policy,  have  a share  in  the  profits  of 
the  company  during  the  time  his  policy  was  in  force,  in  pro- 
portion to  the  sums  by  him  paid  on  account  of  said  policy 
according  to  the  contract  or  policy,  after  all  expenses,  losses 
and  liabilities  then  incurred,  including  a sum  sufficient  to 
re-insure  all  outstanding  risks,  have  been  deducted.  And  he 
shall,  in  like  manner,  be  subject  to  pay  any  assessments 
which  may  be  laid  by  such  company  for  the  payment  of  losses 
and  expenses,  in  accordance  with  its  charter  and  the  laws 
regulating  such  companies. 

Section  113.  The  directors  of  mutual  fire  insurance 
companies  may  divide  the  property  insured  into  not  exceed- 
ing four  classes.  The  policy  shall  designate  the  class,  and 
the  assessments  shall  be  made  upon  premiums  and  deposits 
belonging  to  the  class  in  which  the  loss  occurs  ; but  no  pol- 


Trustees 
may  insure 
and  create 
liens. 

Liabilities  of. 
G.S.68,§59. 


Members  to 
share  profits, 
and  contri- 
bute to  pay 
losses. 

Q.S.58,  f51. 
1863,249,  J 6. 


Classification 
of  risks. 
Policies,  as- 
sessments, 
expenses  and 
dividends, 
how  to  be 
made  and 
apportioned. 
G.S.68,§63. 
7 Gray,  267. 


34 


INSURANCE  LAWS  OP  MASSACHUSETTS. 


14  Gray,  459. 
8 Allen,  217. 
See  sects. 

32, 114, 115. 


When  and 
how  to  be 
laid. 

G.S.58,H8. 

9 Cush.  140. 
12  Cush.  64. 

2 Gray,  279. 

3 Gray,  208, 
210. 

6 Gray.  77, 
288. 

7 Gray,  267. 

10  Gray,  297. 
12  Gray, 165. 
14  Gray,  440. 
5 Allen,  446. 

7 Allen,  235. 

8 Allen,  27, 
217. 

9 Allen,  319, 
483. 

10  Allen,110. 
Record  and 
statement 
to  be  made 
and  record- 
ed. 

To  be  open 
to  inspec- 
tion. 

G.  S.  58,  § 54. 
8 Allen,  27. 
10  Allen,110. 


icy  shall  be  issued  in  a separate  class,  until  five  hundred  thou- 
sand dollars  are  subscribed  to  be  insured  in  that  class  on  one 
date,  and  the  same  is  entered  on  the  books  of  the  company. 
The  expenses  of  the  company  not  strictly  applicable  to  either 
class,  shall  be  apportioned  to  each  class  according  to  the 
amount  of  premiums  paid  by  that  class  for  the  same  period ; 
and  in  a division  of  the  funds  and  returns  of  premiums  and 
deposits,  each  member  shall  be  entitled  to  receive  his  propor- 
tion of  the  profits  belonging  to  the  class  in  which  he  was  in- 
sured. No  money  belonging  to  one  class,  received  either  as 
premium  or  assessment  in  said  class,  shall  be  used  to  pay 
losses  or  expenses  or  other  liability  of  any  other  class. 

[Assessments.] 

Section  114.  When  the  just  claims  against  a mutual 
fire  insurance  company  exceed  the  funds,  its  directors  shall 
assess  such  sums  as  may  be  necessary  upon  the  members,  in 
proportion  to  their  premium  and  deposit,  no  member  being 
liable  to  pay,  in  addition  to  his  premium  and  deposit,  more 
than  a sum  equal  to  his  said  premium  and  deposit ; and  in  case 
of  classification  of  risks,  said  assessment  shall  be  made  upon 
such  premium  and  deposit  as  were  given  upon  hazards  asso- 
ciated with  the  property  upon  which  losses  have  occurred. 

Section  115.  Mutual  fire  insurance  companies,  upon 
making  an  assessment,  shall  keep  a record  of  the  vote  passed 
by  the  directors  for  making  the  same,  with  a statement  of 
the  condition  of  the  company  at  the  time  such  assessment  is 
made.  When  an  assessment  is  ordered,  the  whole  amount 
to  be  raised  and  the  particular  losses  or  other  liabilties  of 
which  said  amount  consists  shall  be  stated.  The  statement 
shall  separately  show  the  amount  of  cash  on  hand,  of  deposit 
notes,  and  of  liabilities  subject  to  such  assessment,  and  it 
shall  be  recorded  in  a book  kept  for  that  purpose,  and  signed 


193 


MUTUAL  FIRE  COMPANIES. 

by  the  directors  voting  for  such  assessment.  Companies 
dividing  their  risk  and  insuring  in  separate  classes  shall 
make  such  statement  for  each  class  in  which  an  assessment 
is  ordered.  Any  member  of  the  company  may  inspect  such 
statement  and  take  a copy  of  the  same  ; and  a person  who 
is  liable  to  assessment  shall  be  considered  a member.  No 
assessment  shall  be  collected  until  such  statement  and  record 
are  made. 

Section  116.  Whenever  the  directors  of  any  mutual  fire 
insurance  company  find  that  its  funds,  other  than  premium 
notes,  are  not  equal  to  the  cash  premium  on  the  unexpired 
term  of  the  existing  risks,  and  that  the  company  is  in  dan- 
ger of  becoming  insolvent,  instead  of  the  assessment  or  call 
herein  before  provided,  they  may  make  two  assessments,  the 
first  determining  what  each  policy-holder  must  equitably  pay 
or  receive  in  case  of  withdrawal  from  the  company  and  hav- 
ing his  policy  cancelled,  the  second  what  further  sum  each 
must  pay  in  order  to  re-insure  the  unexpired  term  of  his  pol- 
icy at  the  same  rate  as  the  whole  was  insured  at  first.  Each 
policy-holder  shall  pay  or  receive  according  to  the  first  assess- 
ment, and  his  policy  shall  then  be  cancelled  unless  he  pre- 
fers to  pay  the  further  sum  determined  by  the  second  assess- 
ment, in  which  case  his  policy  shall  continue  in  force : pro- 
vided^ that  in  neither  case  shall  any  policy-holder  receive  or 
have  credited  to  him  more  than  he  would  have  received  on 
having  his  policy  cancelled  by  vote  of  the  directors,  under 
the  by-laws  of  the  company. 

Section  117.  Whenever  the  directors  in  any  mutual  fire 
insurance  company  make  an  assessment  or  call  on  its  mem- 
bers for  money  under  the  provisions  of  the  preceding  sec- 
tion,* or  by  vote  determine  that  there  exists  a necessity  for 

* Sections  117  to  122,  inclusive,  do  not  apply  to  an  assessment  made 
under  the  provisions  of  section  114.  (Acts  of  1864,  IGl,  § 2.) 


35 


See  sect.  113, 


Instead  of 
foregoing  as- 
sessment, di- 
rectors may 
make  in  cer- 
tain cases 
two  assess- 
ments, one 
compulsory, 
the  other  op- 
tional. 

Unless  latter 
paid,  policy 
to  he  can- 
celled. 
1863,249,  k 4. 

9 Cush.  140. 
12  Cush.  64. 

2 Gray,  279. 

3 Gray,  208, 
210. 

6 Gray,  77, 
288. 

7 Gray,  267. 

10  Gray,  297. 
12  Gray,  165. 
14  Gray, 440. 
5 Allen,  446. 

7 Allen,  236. 

8 Allen,  27, 
217. 

9 Allen.  319, 
483. 

10  Allen,110. 

11  Allen, 574. 
Proviso. 


The  S.  J. 
Court  may 
examine 
such  assess- 
ments, or  or- 
der one  to 
be  made. 
1862,181,  $ 1. 
1863,249, § 6. 


194 


36 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


1864,161,  § 2. 
11  Allen, 574. 
Where  and 
by  whom  ap- 
plication 
may  be 
made. 


Proviso, 


Gray,  210. 


Directors  to 
file  state- 
ment. 


Notice  and 
proceedings 
on  the  peti- 
tion. 

1862,181,  ^ 2. 
11  Allen,  574. 


^^^Auditor  to 
be  appoint- 
r ed. 

To  notify 
and  bear  all 
parties,  and 
report. 
1862,181,  § 2, 
1863,  249,  H 
3,  5. 

11  Allen,574 


such  assessment  or  call,  they,  or  any  person  interested  in  the 
company ‘as  an  officer,  policy-holder  or  creditor,  may  apply 
to  the  supreme  judicial  court  for  any  county,  by  a petition  in 
the  nature  of  a bill  in  equity,  praying  the  court  to  examine 
said  assessment  or  call,  the  necessity  therefor,  and  all  mat- 
ters connected  therewith,  and  to  ratify,  amend  or  annul  the 
assessment  or  call,  or  to  order  that  the  same  be  made,  as  law 
and  justice  may  require : provided^  such  application  when 
made  by  any  party  except  the  corporation,  or  a receiver,  or 
the  Insurance  Commissioner,  shall  rest  in  the  discretion  of 
the  court.  Whenever  the  directors  unreasonably  neglect  to 
make  an  assessment  or  call  to  satisfy  an  admitted  or  ascer- 
tained claim  upon  the  company,  any  judgment  creditor,  or 
any  person  holding  such  admitted  or  ascertained  claim,  or  the 
Insurance  Commissioner,  may  make  the  application  to  the 
court.  Upon  such  application,  if  made  by  the  directors,  or 
upon  any  order  of  the  court,  if  made  by  application  of  any 
other  party,  the  directors  shall  set  forth  the  claims  against 
the  company,  its  assets  and  all  other  facts  and  particulars 
appertaining  to  the  matter. 

Section  118.  The  court  before  which  such  petition  is 
filed  shall  order  notice  to  be  given  to  all  parties  interested  by 
publication  or  otherwise,  and  upon  the  return  thereof  shall 
proceed  to  examine  the  assessment  or  call,  or  the  necessity 
therefor,  and  all  matters  connected  therewith.  Any  parties 
interested  may  appear  and  be  heard  thereon.  All  questions 
that  arise  shall  be  heard  and  determined  as  in  other  equity 
cases. 

Section  119.  The  application  shall  be  referred  to  an 
auditor,  who  shall  appoint  a time  and  place  to  hear  all 
parties  interested  in  the  assessment  or  call,  and  shall  give 
personal  notice  thereof,  in  writing,  to  the  Insurance  Com- 
missioner, and  through  the  post-office,  so  far  as  he  is  able, 


MUTUAL  FIRE  COMPANIES. 


37 


to  all  persons  liable  upon  said  assessment  or  call.  The 
auditor  shall  hear  the  parties,  and  report  upon  the  correct- 
ness of  the  assessment  or  call,  and  all  matters  connected 
therewith.  The  court  may  refer  the  apportionment  or  cal- 
culation  to  any  competent  person ; and  upon  the  examina- 
tion may  ratify,  amend  or  annul  the  assessment  or  call,  or 
order  one  to  be  made  ; and  may  make  such  orders  and 
decrees  in  the  premises  as  under  all  the  circumstances  jus- 
tice and  equity  require.  In  case  the  assessment  or  call  is 
altered  or  amended,  or  one  is  ordered  to  be  made,  the 
directors  shall  forthwith  proceed  to  vote  the  same  in  legal 
form,  and  the  record  of  such  vote  shall  be  set  forth  in  a 
supplemental  bill  or  answer. 

Section  120.  When  an  assessment  or  call  has  been,  as  Decree  to  be 

entered  by 

above  provided,  ratified,  ascertained  or  established,  a decree  Effect'S!' 
shall  be  entered  which  shall  be  final  and  conclusive  upon  iiAUen^sTf. 
the  company  and  all  parties  liable  to  the  assessment  or  call, 
as  to  the  necessity  of  the  same,  the  authority  of  the  com- 
pany to  make  or  collect  the  same,  the  amount  thereof,  and 
all  formalities  connected  therewith.  And  where  an  assess- 
ment or  call  hereafter  made  is  altered  or  amended  by  vote 
of  directors,  and  decree  of  the  court  thereon,  such  amended 
or  altered  assessment  or  call  shall  be  binding  upon  all  par- 
ties who  would  have  been  liable  under  it  as  originally  made, 
and  in  all  legal  proceedings  shall  be  held  to  be  such  original 
assessment  or  call.  All  proceedings  above  provided  for  costs, 
shall  be  at  the  cost  of  the  company,  unless  the  court  for 
cause  otherwise  order ; and  in  all  cases  the  court  may 
control  the  disposition  of  the  funds  collected  under  these 
proceedings. 

Section  121.  If  it  appears  to  the  presiding  judge  of  the 
court  before  which  such  application  is  pending,  that  tlie  net  SJof'ihe 
proceeds  of  any  assessments  or  call  will  not  be  sufficient  to  iSTg.Ts. 

11  AlleD,674. 


196 


38  INSURANCE  LAWS  OF  MASSACHUSETTS. 

furnish  substantial  relief  to  those  having  claims  against  the 
company,  the  judge  may  decree  that  no  assessment  shall  be 
collected  ; and  when,  upon  the  application  of  the  Insurance 
Commissioner  or  any  person  interested,  the  judge  is  of 
opinion  that  further  attempts  to  collect  any  assessment  then 
partially  collected  will  not  benefit  those  having  claims 
against  the  company,  he  may  stay  the  further  collection  of 
said  assessment. 

If  both  as-  Section  122.  If,  within  two  months  after  the  assess- 

ments  have  become  collectable,  the  amount  of  the  policies 
whose  holders  have  settled  for  both  assessments  does  not 

1863,249,  H. 

11  Allen, 574.  Qq^^i  the  amouut  required  by  the  charter  of  the  company 
for  the  commencement  of  business,  and  in  no  case  less  than 
two  hundred  and  fifty  thousand  dollars,  the  company  shall 
cease  to  issue  policies  ; and  all  policies  whose  holders  have 
not  settled  for  both  assessments  shall  then  be  void,  and  the 
company  shall  continue  only  for  the  purpose  of  adjusting 
the  deficiency  or  excess  of  premiums  among  the  members 
and  settling  outstanding  claims. 

Limitation  of  SECTION  123.  No  asscssmcnt  shall  be  laid  on  any  member 

assessment. 

?865,^i6  ^ whose  policy  has  expired  or  been  cancelled  for  the  period 

2 AUen,  82^'  of  two  vcars  I and  no  assessment  shall  be  valid  against  any 

11  Allen, 576.  J ’ o j 

person  who  has  not  been  duly  notified  thereof  in  writing, 
within  two  years  after  the  expiration  or  cancellation  of  his 
policy. 

s.j.  Court  Section  124.  Whenever  it  appears  to  the  supreme  judi- 

may  stay  col- 

anyifs-  cial  coui't,  upou  a petition  in  the  nature  of  a bill  in  equity, 

i86M6i,§i.  by  any  member  of  a mutual  fire  insurance  company,  or  by 
the  Insurance  Commissioner,  that  further  attempts  to  col- 
lect any  assessment  then  partially  collected,  will  not  furnish 
substantial  relief  to  those  having  claims  against  the  com- 
pany, the  court  may  stay  the  further  collection  of  said 
assessment. 


197 


MUTUAL  FIRE  COMPANIES. 


39 


Section  125.  Any  officer  or  director  of  a mutual  fire 
insurance  company,  who  either  officially  or  privately  gives  a 
guaranty  to  any  policy-holder  thereof  against  an  assessment 
to  which  he  would  otherwise  be  liable,  shall  be  punishable 
with  a fine  not  exceeding  one  hundred  dollars  for  each 
offence. 

Section  126.  If  a mutual  fire  insurance  company  is 
owing  for  money  borrowed  to  pay  losses  or  expenses,  or  is 
owing  for  losses  or  expenses  which  it  cannot  pay  otherwise 
than  by  borrowing  money,  and  the  directors  neglect  or  omit, 
for  the  space  of  six  months  after  such  losses  or  expenses 
became  due  and  payable,  to  lay  and  collect  with  all  practi- 
cable diligence  an  assessment  which,  with  other  cash  funds 
on  hand,  if  any,  is  sufficient  to  discharge  all  the  existing 
indebtedness  of  the  company,  they  shall  be  personally  liable 
for  all  debts  and  claims  then  outstanding  against  the  com- 
pany, and  for  all  thereafter  accruing,  until  an  assessment  is 
laid  and  put  in  process  of  collection,  as  aforesaid. 

Section  127.  When  sufficient  property  of  a mutual  fire 
insurance  company  cannot  be  found  to  satisfy  an  execution 
issued  against  it,  and  it  has  property  belonging  to  the  period 
assessed,  the  proceeds  of  which  can  be  applied  to  satisfy 
such  execution,  if  the  directors  neglect  to  pay  the  same,  or 
neglect  for  thirty  days  after  the  rendition  of  judgment  to 
make  an  assessment  and  deliver  the  same  to  the  treasurer 
for  collection,  or  to  apply  such  assessment  when  collected  to 
the  payment  of  the  execution,  they  shall  be  personally 
liable  for  the  amount  of  the  execution. 

Section  128.  When  the  directors  of  a mutual  company 
are  liable  to  pay  an  execution  against  the  company,  the 
creditor  may  recover  the  same  by  a suit  in  equity  or  by  an 
action  at  law  against  the  directors.  Any  director  who  pays 
an  execution  against  the  company  for  which  he  is  personally 


Guaranty 
against  as- 


prohibited. 
1860, 149. 


Penalty. 


If  unable  to 
pay  losses 
without  bor- 
rowing, di- 
rectors liable 
for  debts  un- 
less they  lay 
assessments 
within  six 
months  of 
loss. 

1868,317,  § 2. 


Liability  of 
directors  for 
neglect  to 
satisfy  judg- 
ment or  as- 
sess therefor. 
G.S.58,  H8. 
9 Cush.  140. 
3 Gray,  210. 
See  sect.  39. 


Remedy  of 
creditor. 

Of  directors 
for  contribu- 
tion, &c. 
G.S.58,  § 60. 
10  Gray,  326. 
See  sect.  39. 


198 


40  INSURANCE  LAWS  OP  MASSACHUSETTS. 

liable,  may  have  a suit  at  law  with  equitable  remedies  for 
contribution  against  any  of  the  directors  for  their  propor- 
tion, and  also  a suit  at  law  with  equitable  remedies  against 
the  company  or  the  individual  members  thereof  who  are 

Proviso.  liable  therefor,  for  money  so  paid  for  them  : provided^  that 
no  member  shall  be  liable  to  pay  in  addition  to  his  premium 
and  deposit  more  than  a sum  equal  thereto. 

Liability  of  Section  129.  If  the  treasurer  of  a mutual  company 

treasurer. 

unreasonably  neglects  to  collect  an  assessment  made  by 
order  of  the  directors  and  to  apply  the  same  to  the  payment 
of  the  claims  for  which  it  was  made,  he  shall  be  liable  in  his 
private  capacity  to  the  party  having  such  claims  for  the 
amount  of  the  assessment ; and  he  may  repay  himself  out 
of  any  money  afterwards  received  for  the  company  on 
account  of  said  assessment. 


199 


STOCK  AND  MUTUAL  (COMBINED)  COMPANIES. 


41 


STOCK  AND  MUTUAL  (COMBINED)  INSURANCE  COMPANIES. 

Section  130.  No  mutual  fire  insurance  company  shall  ca'JStafre- 
issue  policies  on  any  other  than  the  mutual  plan  of  insur-  How^paid  m 
ance,  excepting  such  companies  as  have  been  chartered  as  ^ 
stock  and  mutual  companies  ; and  such  companies,  if  doing  33® 
business  in  Boston,  either  directly  or  through  agencies, 
before  issuing  policies  or  transacting  any  business  in  the 
stock  department,  shall  have  a guarantee  capital  of  at  least 
one  hundred  thousand  dollars,  paid  in  and  invested  as 
required  by  sections  ninety,  ninety-one  and  ninety-two, 
exclusive  of  stockholders’  notes,  (unless  such  notes  are 
secured  by  mortgage  or  by  pledges  of  stock  or  bonds,  as 
provided  in  section  ninety-one,)  and  of  all  debts  due  from 
the  company,  and  such  proportion  of  all  premiums  received 
in  cash  for  risks  not  terminated,  as  would  be  requisite  to 
re-insure  the  same.  If  doing  business  in  any  other  city  or 
town,  the  sum  of  at  least  fifty  thousand  dollars  shall  he 
paid  in  and  invested  in  like  manner,  and  be  subject  to  like 
conditions  and  restrictions. 

Section  131.  All  business  and  investments  on  account 
of  the  stock  department  of  such  companies  shall  be  sepa- 
rat3ly  kept,  and  the  returns  to  the  Insurance  Commissioner 
respecting  the  same  shall  be  according  to  the  form  pre-  207,209,211. 
scribed  or  authorized  for  joint-stock  insurance  companies. 

The  business  done  on  the  mutual  principle  shall  also  be 
kept  separate,  and  returns  made  agreeably  to  the  form  pre- 
scribed or  authorized  for  mutual  fire  insurance  companies. 

Section  132.  Such  combined  companies  shall  not  take 
on  any  one  risk  in  their  stock  department  a sum  exceeding  See  sect.  142. 

6 


200 


42  INSURANCE  LAWS  OF  MASSACHUSETTS. 

one-tenth  of  their  capital  stock  ; and  when  the  capital  stock 
is  reduced  in  any  Way,  the  amount  thereafter  to  be  taken 
on  any  one  risk  shall  forthwith  be  correspondingly  reduced 
to  the  limitation  in  section  ninety-six,  until  the  capital  is 
restored  to  its  original  amount. 

Directors,  SECTION  133.  Onc-lialf  of  the  directors  of  every  mutual 

G.S.58,  h6.  insurance  company  with  a guarantee  capital,  shall  be 
chosen  from  the  holders  of  the  guarantee  stock,  and  the 
other  half  from  the  members  of  the  mutual  department. 

Duties  of  Section  134.  The  secretary  shall  keep  a true  list  of 

secretary. 

seesSts.  stockholders  of  the  guarantee  capital,  and  of  the  number  of 
shares  held  by  each,  and  a record  of  the  transfer  of  shares. 

Special  meet-  SECTION  135.  Special  meetings  may  be  called  by  the 

ings. 

8 Gray^’2V^^’  ^h'ectors  wlien  they  think  proper,  and  shall  be  called  by 

14  Gray,  440.  them  upon  the  written  application  of  the  owners  of  one-fifth 
of  the  guarantee  stock,  or  of  twenty  members  of  the  mutual 
department,  setting  forth  the  purposes  of  the  meeting. 


MUTUAL  MARINE  AND  FIRE-MARINE  COMPANIES. 


43 


MUTUAL  MARINE,  AND  MUTUAL  FIRE -MARINE,  INSURANCE 

COMPANIES. 

Section  136.  Mutual  marine  and  mutual  fire  and  marine 
insurance  companies,  established  by  the  laws  of  this  State, 
shall  be  subject  to  the  provisions  of  sections  one  hundred, 
one  hundred  one,  one  hundred  three,  one  hundred  four  and 
one  hundred  five,  relating  to  mutual  fire  insurance  compa- 
nies, and  shall  before  commencing  business  have  an  agree- 
ment substantially  as  follows,  viz. : 

“ The  subscribers,  members  of  the  insurance 

company,  severally  agree  to  pay  said  company  on  demand 
the  sums  set  against  our  names,  or  such  part  thereof  as  may 
be  called  in  for  the  use  of  the  company,  in  money  or  prom- 
issory notes.” 

Section  137.  Policies  of  insurance  may  be  issued  by 
such  company  when  two  hundred  thousand  dollars,  if  the 
company  is  in  Boston,  or  one  hundred  thousand  dollars,  if 
the  company  is  in  any  other  city  or  town  in  the  State,  has 
been  subscribed  and  paid  in  cash  or  notes  payable  on  time 
not  exceeding  twelve  months : provided,  that  no  insurance 
company  chartered  after  the  eighth  of  June,  eighteen  hun- 
dred and  sixty-eight,  with  authority  to  effect  marine  insur- 
ance on  the  mutual  principle,  shall  issue  policies  until  at 
least  one -half  of  the  subscribed  capital  or  safety  fund  re- 
quired by  law  has  been  paid  in  in  cash ; and  provided, 
further,  that  no  policies  shall  be  issued  as  aforesaid,  until 
the  president  and  a majority  of  the  directors  have  certified 
that  the  subscribers  are  known  to  them,  and  they  believe 
them  solvent  and  able  to  pay  their  subscriptions  ; and  a copy 


Election  and 
duties  of  offi- 
cers. 

Special  meet- 
ings. 

G.S.58,  §35. 


Form  of  sub- 
scription. 


When  poli- 
cies may  is- 
sue. 

G.S.68,§  35. 
1868,317,  § 3. 


Proviso. 


Certificate  to 
be  made  and 
filed  annu- 
ally. 


202 


44 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


Subscrip- 
tions, how 
held  and 
used. 

G.  S.  58,  § 37. 


Subscription 
notes  to  be 
paid  or  re- 
newed. 


Penalty  for 
false  certifi- 
cate. 

G S.  58,  § 37. 
See  sect.  3D. 


Notes,  how 
cancelled. 
Investment. 
G.S.58,  §37. 
See  sects.  32, 
33. 


Who  are 

members. 

G.S.58,.§ 


of  the  certificate  has  been  deposited  with  the  Insurance 
Commissioner  and  approved  by  him.  Subsequent  subscrip- 
tions shall  be  made  and  certified  in  like  manner ; and  a like 
copy  shall  annually,  on  or  before  the  first  day  of  November, 
be  filed  with  the  Commissioner.  The  provisions  of  law 
relating  to  the  capital  of  joint  stock  insurance  companies, 
shall  be  applicable  to  the  cash  capital  of  such  mutual  com- 
panies. 

Section  138.  The  subscriptions  provided  for  in  the  two 
preceding  sections  shall  constitute  a permanent  fund,  to  be 
used  when  necessary  for  payment  of  the  losses  and  expenses 
of  the  company ; but  shall  not  be  applied  to  pay  the  pre- 
miums for  insurance  effected  by  the  subscribers.  The  sub- 
scription notes  as  they  mature  shall  be  paid  in  or  other  notes 
substituted  therefor,  so  that  the  amount  of  the  original  fund 
shall  not  be  reduced. 

Section  139.  If  any  subscriber  fails  to  pay  his  subscrip- 
tion, and  it  is  proved  that  the  president  or  a director  know- 
ingly certified  falsely  in  regard  to  such  subscriber,  the 
person  certifying  shall  be  liable  to  the  company  for  such 
sum  as  the  subscriber  fails  to  pay. 

Section  140.  The  subscription  notes  or  any  pro  rata 
portion  thereof  may  be  cancelled  whenever  the  net  profits 
of  the  business  are  sufficient  to  replace  the  same  j and  such 
profits  shall  then  be  invested  as  prescribed  in  sections 
ninety-one  and  ninety-two,  thereafter  to  be  held  as  the 
permanent  fund  in  place  of  said  notes.  All  payments  made 
on  subscription  notes  and  all  cash  funds  not  required  for  the 
current  uses  of  the  company  shall  be  invested  in  the  same 
manner. 

Section  141.  Each  subscriber  during  the  term  of  his 
subscription,  and  each  person  insured  shall  be  a member  of 
the  company ; but  persons  insured  shall  not  remain  members 


MUTUAL  MARINE  AND  FIRE-MARINE  COMPANIES. 


45 


after  the  termination  of  the  risk  and  the  payment  of  the 
loss,  if  any  thereon. 

Section  142.  No  company  shall  hold  on  one  risk  more  Limitation 

^ of  risks. 

than  ten  per  cent,  of  its  subscriptions  and  invested  funds,  gee^sects! 

132  * 

not  pledged,  and  premium  notes  on  risks  absolutely  termi- 
nated, after  deducting  therefrom  all  losses  and  claims  for 
losses,  or  cash  received  for  risks  not  terminated,  and  all 
debts.  Whenever  by  means  of  open  policies  or  indorse-  Reinsurance, 
ments  thereon  more  than  ten  per  cent,  is  so  at  risk,  the 
directors  shall  as  soon  as  may  be  obtain  re-insurance  for 
the  amount  of  such  excess. 

Section  143.  If  a company  is  at  any  time  liable  for  Liability  of 

officers  for 

losses  beyond  the  amount  of  its  cash  fund,  legal  investments, 
premium  notes  received  from  risks  terminated,  and  subscrip-  ?2Griy,fe5! 

See  sects.  39, 

tion  notes,  the  president  and  directors,  knowing  the  condi-  97. 
tioii  of  the  company,  shall  be  personally  liable  for  all  losses 
occurring  on  insurance  effected  during  such  state  of  the 
company. 

Section  144.  The  directors  shall  require  the  president  Monthly 

statement. 

to  make  a monthly  statement  to  them  of  the  assets  and  lia-  g s.58,§39. 

bilities  of  the  company ; which  statement  shall  be  entered 

upon  their  records,  or  in  a book  kept  for  that  purpose. 

Section  145.  Mutual  marine  insurance  companies  incor-  Annual  divi- 
dend state- 

porated  in  this  State  which  have  been  in  operation  not  less  Ne°profitsto 
than  twelve  months,  shall  cause  an  annual  dividend  state-  ?ceJti?u‘^peJ 

cent,  on  pre- 

ment  to  be  made  up  in  each  year,  containing  a fair  estimate 
of  the  net  profits  of  the  company  not  before  divided,  taking  Sp’to'il 
into  view  the  probable  amount  to  be  paid  on  all  claims,  out-  g!s.58,ho. 

T . . , . , . , ^ See  sect.  112. 

standing  risks,  and  demands,  against  the  company,  and  in- 
cluding expenses,  interest,  and  allowances  for  previous  defi- 
ciencies. After  ascertaining  in  this  mode  the  net  profits  of 
the  year  on  the  risks  terminated,  the  directors  may  declare 
a dividend  of  such  profits  of  a certain  per  cent,  on  the  pre- 


46 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


milims  received  for  such  terminated  risks,  and  the  subscrip- 
tions made  to  the  safety  fund  in  that  year,  and  may  issue 
certificates  representing  said  dividend  to  the  persons  in 
whose  names  the  policies  of  insurance  and  subscriptions  for 
the.  year  in  conformity  to  the  provisions  of  sections  one  hun- 
dred thirty-six  and  one  hundred  thirty-seven  were  originally 
made,  or  to  their  legal  representatives. 

SieX.  Section  146.  The  certificates  shall  be  transferable  only 

as“5stH0.  Oil  the  books  of  the  company,  under  regulations  to  be  pre- 
scribed by  the  by-laws,  and  shall  contain  a provision  de- 
claring the  same  to  be  subject  to  future  losses  and  expenses 
of  the  company  until  they  are  redeemed  as  hereinafter  pro- 
vided, and  subject  to  be  reduced  by  the  directors  in  case  of 
losses  and  expenses  in  any  subsequent  year  exceeding  the 
estimated  profits  of  such  year.  But  such  original  certificate 
need  not  be  issued  for  a less  sum  than  ten  dollars.  All  such 
sums  may  be  passed  to  the  contingent  accounts  of  the  com- 
pany. 

Interest  on  SECTION  147.  Such  Companies  may  pay  on  the  certificates 
issued  ill  conformity  with  the  preceding  sections,  from  the 

G.S.  58,  § 41.  . ^ ° ’ 

accrued  income  of  their  invested  funds,  interest  not  exceed- 
ing six  per  cent,  per  annum  ; and  whenever  the  net  profits 
of  any  such  company  exceed  the  sum  of  two  hundred  and 
fifty  thousand  dollars,  the  excess  may  be  applied  from  year 
to  year  thereafter  to  the  redemption  of  the  certificates  of 
the  previous  years  in  such  manner  as  the  directors  deter- 
mine ; but  no  certificates  of  any  year  shall  be  redeemed 
while  certificates  of  previous  years  remain  unredeemed. 
When  the  accumulations  of  net  profits  of  such  company 
exceed  the  sum  of  five  hundred  thousand  dollars,  such  ex- 
cess shall  be  so  applied. 

Debts  oyer-  SECTION  148.  When  a person  entitled  to  a certificate  of 

due  may  be 

8?r1p.  pi’ofits  is  indebted  to  such  company  for  any  sum  past  due, 


205 


MUTUAL  MARINE  AND  FIRE-MARINE  COMPANIES. 

the  company  may  withhold  the  certificate  and  deduct  such 
sum  from  the  amount  thereof,  and  reduce  or  cancel  the 
same ; but  persons  holding  policies  of  the  company  or  en- 
titled to  certificates  shall  not  be  answerable  by  reason  there- 
of, or  for  anything  contained  therein,  except  for  the  pay- 
ment of  their  premium  or  other  notes  in  advance  for  pre- 
miums. 


47 

Policy-hold- 
ers not  li- 
able, &c. 

G.  S.  68,  § 42. 


48 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


Guarantee 
capital. 
G.S.58,  § 60. 
See  sects.  32, 
33. 


Directors, 
how  chosen. 
G.S.  58,  § 60. 


Annual 
meetings. 
1870,349, } 7. 


Dividends  to 
stockhold- 
ers. 

G.S.  58,  §60. 
1870,349,  § 6. 


LIFE  INSURANCE  COMPANIES. 

Section  149.  Before  any  mutual  life  insurance  company 
goes  into  operation,  a guarantee  capital  of  one  hundred 
thousand  dollars  shall  be  paid  in  money  and  invested  as 
re(][uired  by  sections  ninety,  ninety-one  and  ninety-two. 

Section  150.  The  subscribers  or  holders  of  guarantee 
stock  in  a mutual  life  insurance  company  shall  choose  the ! 
first  board  of  directors  ; at  all  subsequent  elections  they  j 
shall  choose  one-half  of  the  directors  until  the  redemption  i 
of  the  guarantee  stock,  when  the  insured  shall  choose  the  ' 
directors. 

Secton  151.  All  members  of  mutual  life  insurance  com- 
panies, incorporated  under  the  laws  of  this  Commonwealth, 
shall  be  notified  of  the  time  and  place  of  holding  the  annua’  | 
meetings  of  said  companies  by  a written  notice  or  by  ar  I 
imprint  upon  the  back  of  each  policy,  receipt  or  certificate  | 
of  renewal,  in  the  following  form,  to  wit : By  virtue  of  if 

this  policy  the  assured  is  hereby  notified  that  he  is  a mem- 1 
her  of  the  Insurance  Company,  and  that,  the  annual  f 
meetings  of  said  company  are  holden  at  its  home  office  on 
the  day  of  in  each  year,  at  o’clock, 

The  blanks  shall  be  duly  filled  in  making  the  aforesaid 
imprint,  and  the  same  shall  be  deemed  a sufficient  notice  as  ' 
herein  provided.  | 

Section  152.  The  stockholders  shall  be  entitled  to  such  j 
annual  dividends  not  exceeding  eight  per  cent.,  as  are 
agreed  upon  at  the  time  of  subscribing  the  capital,  if  the 
net  surplus  over  a requsite  reservation  for  liabilities  and 
contingencies  is  sufficient  to  pay  the  same ; and  if  less  than 


207 


LIFE  INSURANCE  COMPANIES.  49 

the  sum  originally  agreed  on,  it  shall  be  made  equal  to  it 
when  the  profits  of  the  company  are  sufficient. 

Section  153.  One-quarter  of  the  estimated  surplus  fund  Redemption 
above  a sufficient  fund  to  provider  risks,  losses,  expenses,  S!t8,§60. 
and  dividends,  shall  be  reserved  to  be  appropriated  to  the 
redemption  of  the  guarantee  stock ; and  after  the  expiration 
of  ten  years  from  the  organization,  when  the  amount  reserved 
is  sufficient  and  the  insured  so  vote,  the  guarantee  stock  may 
be  redeemed. 

Section  154.  At  the  expiration  of  every  five  years,  the  surplus, 

how  may  be 

residue  of  the  estimated  surplus  fund  may  be  divided  among  aming^poi- 
the  assured  in  proportion  to  the  amount  of  premiums  paid 
by  them  respectively  on  account  of  the  risk  on  their  policies 
for  any  part  or  the  whole  of  the  preceding  five  years  : pro-  ProTiso. 
vided^  that  any  policy  on  which  the  premium  is  payable 
otherwise  than  by  equal  annual  payments,  shall  not  be 
entitled  to  a larger  distribution  than  if  the  premium  had 
been  so  paid. 

Section  155.  Life  insurance  companies  which  do  busi-  Distribution 

of  surplus. 

ness  upon  the  principle  of  mutual  insurance,  or  the  members  i866,33,$§ 
of  which  are  entitled  to  share  in  the  surplus  funds  thereof, 
may  make  distribution  of  such  surplus  as  they  have  ac- 
cumulated, annually,  or  once  in  two,  three,  four  or  five 
years,  as  the  directors  thereof,  from  time  to  time  determine. 

In  determining  the  amount  of  the  surplus  to  be  distributed,’  Premium  re- 
there  sliall  be  reserved  an  amount  not  less  than  the  aggre- 
gate net  value  of  all  the  outstanding  policies,  said  value 
being  computed  by  the  “ Combined  Experience”  or  Actu- 
aries’ ” rate  of  mortality,  with  interest  at  four  per  cent. 

Section  156.  Such  surplus  fund  may  be  distributed  Surplus  may 

be  divided  on 

among  the  members  of  such  companies,  in  proportion  to  the 
sums  of  money  which  each  member  has  contributed  to  the  S’,  33,  §§ 
entire  surplus  funds  to  be  distributed  among  all  the  mem- 
7 


208 


INSURANCE  LAWS  OF  MASSACHUSETTS. 

bers,  and  including  in  such  contribution  a just  and  equitable 
allowance  for  interest.  Policies  which  have  become  payable 
before  the  time  when  such  distribution  is  made,  and  after  the 
date  of  the  last  previous||Btribution  of  surplus,  may  share 
in  the  same  equitably  and  proportionally. 

Section  157.  A policy  of  insurance  on  the  life  of  any 
P^i’son,  expressed  to  be  for  the  benefit  of  any  married 
G.s^^58,^62.  "^l^ether  procured  by  herself,  her  husband,  or  any 

iiAiien.224  other  persou,  shall  inure  to  her  separate  use  and  benefit  and 
that  of  her  children,  independently  of  her  husband  or  his 
creditors,  or  the  person  efiecting  the  same  or  his  creditors. 

trustee  may  be  appointed  by  the  party  obtaining  the 
policy,  or  if  no  such  appointment  is  made,  then  by  the 
judge  of  the  probate  court  for  the  county  in  which  the  party 
for  whose  benefit  said  policy  is  made  resides,  to  hold  the 
interest  of  the  married  woman  in  such  policy  or  the  proceeds 

thereof. 

Section  158.  A policy  of  insurance  on  the  life  of  any  < 
to°Shom*to  ’ assigned,  transferred  or  made  payable  to  any  ‘i 

i86?i97.  “allied  woman,  or  to  any  person  in  trust  for  her  or  for  ' 

UAiie.,224  her  benefit,  whether  such  transfer  be  made  by  her  husband 
or  other  person,  shall  inure  to  her  separate  use  and  benefit,  , 
and  that  of  her  children,  independently  of  her  husband  or 
his  creditors,  or  of  the  person  effecting  or  transferring  the 
r,o,i,o.  same  or  his  creditors  : provided,  however,  that  if  the  pre- 
mium on  such  policy  is  paid  by  any  person  with  intent  to  : 
defraud  his  creditors,  an  amount  equal  to  the  premium  so 
paid,  with  interest  thereon,  shall  inure  to  the  benefit  of  said 
creditors,  subject,  however,  to  the  statute  of  limitations, 
ed  by'one  SECTION  159.  11' licii  a policy  is  effected  by  any  person  on  i 

person  for  •'.'r 

Se^fto  another,  expressed  to  be  for  the  ■ 

whom  to  benefit  of  such  other,  or  his  representatives,  or  a third  per-  \ 

G.S.  58,  i 62.  . 1 ^ 

son,  the  person  for  whose  benefit  it  was  made  shall  be 


50 


Policy  for 
benefit  of 

marrio/1 


LIFE  INSURANCE  COMPANIES. 


51 


entitled  thereto  against  the  creditors  and  the  representa- 
tives of  the  person  effecting  tlie  same.  If  the  premium  is 
paid  by  any  person  with  intent  to  defraud  his  creditors,  an 
amount  equal  to  the  premium  so  paid,  with  interest  thereon, 
shall  inure  to  their  benefit. 

Section  160.  No  policy  of  insurance  on  life,  issued  on  or 
after  the  tenth  day  of  May,  in  the  year  eighteen  hundred 
and  sixty-one,  by  any  company  chartered  by  the  authority  of 
this  Commonwealth,  shall  be  forfeited  or  become  void  by  the 
non-payment  of  premium  thereon,  any  further  than  regards 
the  riglit  of  the  party  insured  therein  to  have  it  continued 
in  force  beyond  a certain  period,  to  be  determined  as  follows, 
to  wit:  The  net  value  of  the  policy,  when  the  premium 
becomes  due  and  is  not  paid,  shall  be  ascertained  according 
to  the  Combined  Experience,”  or  Actuaries’  ” rate  of 
mortality,  with  interest  at  four  per  centum  per  annum. 
After  deducting  from  such  net  value  any  indebtedness  to 
the  company  or  notes  held  by  the  company  against  the  in- 
sured, which  notes  if  given  for  premium  shall  then  be  can- 
celled, four-fifths  of  what  remains  shall  be  considered  as  a 
net  single  premium  of  temporary  insurance,  and  the  term 
for  which  it  will  insure  shall  be  determined  according  to  the 
age  of  the  party  at  the  time  of  the  lapse  of  premium,  and 


Not  to  de- 
fraud cred- 
itors. 


Policies 
lapsed  by 
non-pay- 
ment of  pre- 
mium, to  be 
continued  in 
force. 

3861,186,  §1. 

10  Gray,  308. 


Term  of  ex- 
tended policy 
how  ascer- 
tained. 


the  assumptions  of  mortality  and  interest  aforesaid. 

Section  161.  If  the  death  of  the  party  occur  within  the  Policy  pay- 
term  of  temporary  insurance  covered  by  the  value  of  the  occur 
policy,  as  determined  in  the  previous  section,  and  if  no  con- 
dition  of  the  insurance  other  than  the  payment  of  premium 
has  been  violated  by  the  insured,  the  company  shall  be 
bound  to  pay  the  amount  of  the  policy,  the  same  as  if  there 
had  been  no  lapse  of  premium,  anything  in  the  policy  to  the 
contrary  notwithstanding  : provided,  however,  that  notice  of  Provisos 
the  claim  and  proof  of  the  death  shall  be  submitted  to  the 


210 


52 


INSURANCE  LAWS  OP  MASSACHUSETTS. 


Corpora- 
tions, asso- 
ciations, 
etc.,  not  to 
insure,  &c., 
except  ac- 
cording to 
laws  of  the 
state. 

G.  S.  58. 
1861, 186. 
1870,  349,§  5. 


Companies 
subject  to 
certain  obli- 
gations. 

1823,  51,  § 2. 
G.S.58,  §61. 
4 Gray,  227. 


Not  to  take 
fire  or  ma- 
rine risks. 
G.S.58,§65. 
See  sect.  218, 


company  within  ninety  days  after  the  decease ; and  pro 
vicled^  alsOj  that  the  company  shall  have  the  right  to  deduc 
from  the  amountdiisured  in  the  policy  the  amount  at  six  pei 
cent,  per  annum  of  the  premiums  that  had  been  forborne  a 
the  time  of  the  death. 

Section  162.  No  corporation,  association,  partnership  oi 
individual  doing  business  in  this  Commonwealth,  under  any 
charter,  compact  or  agreement  involving  an  insurance! 
guaranty,  contract  or  pledge  for  the  payment  of  annuitif 
or  endowments,  or  for  the  payment  of  moneys  to  the  fam  . 
lies  or  representatives  of  policy  or  certificate  holders  pi 
members,  shall  make  such  insurance,  guaranty  or  contract 
therein  or  with  any  residents  of  this  State,  except  in  accord? 
ance  with  and  under  the  conditions  and  restrictions  of  th^ 
statutes  now  or  hereafter  regulating  the  business  of  life  in' ' 
surance : provided^  that  nothing  in  this  section  shall  be  heh 
to  conflict  with  the  provisions  of  chapter  one  hundred  an' 
eighty-six  of  the  acts  of  eighteen  hundred  and  sixty-one.  d 

Section  163.  Every  company  empowered  to  make  insur-) 
ance  on  lives  upon  land  shall  be  subject  to  the  same  obliga- 
tions for  the  payment  of  a certain  share  of  the  profits  to  the 
Massachusetts  General  Hospital  as  are  imposed  on  thJ 
Massachusetts  Hospital  Life  Insurance  Company. 

Section  164.  No  life  insurance  company  shall  issu 
policies  insuring  fire  or  marine  risks. 

\_For  provisions  relating  to  valuation  of  policies^  se^ 
sections  9 and  204.  For  other  provisions^  relating  to  Lift 
Insurance  Companies,  see  also  sections  201,  210,  214  and 
215.] 


I 


COMPANIES  OF  OTHER  STATES  AND  COUNTRIES. 


53 


INSURANCE  COMPANIES  OE  OTHER  STATES  AND  FOREIGN 

COUNTRIES. 

[Conditions  of  Admission  to  do  Business  in  this  State.] 

Section  165.  No  insurance  company  not  incorporated  Joint  stock 

^ ^ companies 

by  the  legislature  of  this  Commonwealth,  and  having  a bS!£ss'in 

. . ..  this  State, 

specific  capital,  shall  by  its  agent  m this  fetate  insure  prop-  unless,  &c. 

G.S.  58, § 66. 

erty  therein  or  contract  for  insurance  with  any  residents  in  gQray  73^' 
this  State,  unless  its  capital  stock  amounts  to  one  hun- 
dred thousand  dollars,  all  of  which  sum  has  been  paid 
in  cash  and  invested,  exclusive  of  stockholders’  obligations 
of  any  description  not  secured  as  required  in  section  ninety- 
one,  and  the  debts  of  the  company  ; nor  unless  the  company 

is  restricted  by  its  charter  or  otherwise  from  incurring  any 

» 

greater  hazard  in  one  risk  than  one-tenth  of  its  unimpaired 
capital ; nor  unless  the  company  has  complied  with  the  laws 
of  this  State. 

Section  166.  It  shall  not  be  lawful  for  any  insurance  Foreign  in- 
company  or  association,  created  by  or  organized  under  the  noTfo?nsLe 
the  laws  of  any  foreign  government,  other  than  the  States  risk  more 

than  ten  per 

of  this  Union,  or  for  any , partnership,  association,  firm  or 
individual  of  such  foreign  government,  or  for  any  agent  or  pSS,  &c. 

, « . G.  S.  58,  §§ 

agents  ot  such  foreign  company,  association,  partnership, 

loo7  ^ . 

firm  or  individual  to  make  contracts  of  insurance,  or  expose  S’ 349, » 

1 4.’  ’ 

such  company,  association,  partnership,  firm  or  individual  to 
loss  in  this  State,  in  any  one  risk  or  hazard  to  an  amount 
exceeding  ten  per  cent,  of  the  value  of  the  securities 
deposited  by  such  company,  association,  partnership,  firm  or 
individual  with  the  several  insurance,  or  other  departments 
of  the  States  of  this  Union,  and  ten  per  cent,  of  the  net 


212: 


54 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


Not  to  re- 
insure risk 
■with  com- 
pau)’,  &c., 
not  author- 
ized to  do 
business  in 
this  State. 


Penalty. 


Mutual  com- 
panies not  to 
do  business 
in  this  State, 
unles.'s,  &c. 
G.S.58,  §67. 
3 Gray,  215. 
6 Gray,  73 


To  satisfy 
Insurance 
Commission- 
er that  they 
have  requi- 
site funds, 
&c. 

G.  S.  58,  § 67. 


Provisions 
of  general 
laws  extend- 
ed. 

1868,317,  § 1 
See  sect.  200. 


assets  in  the  hands  of  trustees  resident  in  and  citizens  of 
any  of  tlie  United  States,  subject  at  all  times  to  the  approval 
of  the  Insurance  Commissioner  of  this  State,  for  the  general 
benefit  and  security  of  all  policy-holders  residing  in  the 
United  States,  which  shall  be  immediately  available  for  the 
payment  of  losses  in  this  State.  Nor  shall  it  be  lawful- for 
any  such  foreign  or  other  insurance  company,  association, 
partnership,  firm  or  individual,  directly  or  indirectly,  to  con- 
tract for  or  effect  any  re-insurance  of  any  risk  on  property 
in  this  State  taken  by  such  company,  association,  partner- 
ship, firm  or  individual,  with  any  insurance  company,  asso- 
ciation, partnership,  firm  or  individual  not  authorized  to 
transact  the  business  of  insurance  in  this  State  in  accord- 
ance with  the  laws  thereof.  Any  violation  of  the  provisions 
of  this  section  shall  subject  the  party  guilty  thereof  to  a 
penalty  of  five  hundred  dollars  for  each  violation. 

Section  167.  No  insurance  company  not  incorporated 
by  the  legislature  of  this  Commonwealth,  and  doing  busi- 
ness upon  the  mutual  plan,  shall  by  its  agent  in  this  State 
insure  property  therein  or  contract  for  insurance  with  any 
resident  thereof,  unless  said  company  has  one  hundred  thou- 
sand dollars  in  cash  or  available  cash  funds  securely  in- 
vested, and  at  least  one  hundred  thousand  dollars  in  deposit 
notes. 

Section  168.  Before  any  company  not  incorporated  as 
aforesaid,  whether  doing  business  on  the  stock  or  mutual 
plan,  transacts  by  its  agents  any  business  in  this  State,  it 
shall  satisfy  the  Insurance  Commissioner  that  it  has  the 
amount  of  funds  required  by  the  laws  of  this  Commonwealth 
and  has  complied  with  all  other  provisions  of  the  same. 

Section  169.  The  provisions  of  all  general  laws  which 
are  or  may  be  in  force^relating  to  insurance  companies  incor- 
porated in  other  States  of  the  United  States,  are  hereby 


213 


COMPANIES  OF  OTHER  STATES  AND  COUNTRIES.  55 

extended  to  all  companies,  associations  and  individuals 
formed  or  associated  in  such  other  States,  and  doing  an 
insurance  business  in  this  State,  whether  incorporated  or 
not. 


[General  Agent  and  Attorney.]  # 

Section  170.  Every  such  company  shall,  before  doing 
business  in  this  State,  appoint  in  writing  a citizen  thereof,  cept  service 

of  process. 

resident  therein,  a general  agent  upon  whom  all  lawful  proc-  g 
esses  against  the  company  may  be  served  with  like  effect  as  lOGrSfiei. 

.-,.1.0  T .T  . . 12  Gray’,  201. 

if  the  company  existed  in  this  State  ; and  said  writing  or 
power  of  attorney  shall  stipulate  and  agree  on  the  part  of 
the  company  making  the  same,  that  any  lawful  process 
against  said  company  which  is  served  on  said  general  agent, 
shall  be  of  the  same  legal  force  and  validity  as  if  served  on 
said  company.  A copy  of  the  writing  duly  certified  and 
authenticated  shall  be  filed  in  the  office  of  the  Insurance 
Commissioner,  and  copies  certified  by  him  shall  be  sufficient 
evidence.  This  agency  shall  be  continued  while  any  liability 
remains  outstanding  against  the  company  in  this  State,  and 
the  power  shall  not  be  revoked  until  the  same  power  is  given 
to  another,  and  a like  copy  filed  as  aforesaid.  Service  upon 
such  agent  shall  be  deemed  sufficient  service  upon  the  prin- 
cipal. 

Section  171.  The  general  agent  shall,  before  any  insur-  Togiveboni. 
ance  is  made  by  such  company,  give  a bond  to  the  Treasurer  ’ ' ’ ^ 
of  the  Commonwealth,  with  one  or  more  sureties  to  be  ap- 
proved by  him,  in  the  sum  of  two  thousand  dollars,  with 
condition  that  he  will  accept  service  of  all  lawful  processes 
against  the  company  in  the  manner  herein  before  provided. 

Section  172.  The  general  agent  of  every  such  company  to  deposit 

copy  of  char- 

shall,  before  any  insurance  is  made,  deposit  with  the  Insur- 

ance  Commissioner  a copy  of  the  charter  of  the  company,  isox^ay/go!' 

See  sects. 

188,  197. 


214 


56  INSURANCE  LAWS  OF  MASSACHUSETTS. 

and  a statement  signed  and  sworn  to  by  the  president  and 
secretary,  in  the  form  prescribed  or  authorized  for  the  annu- 
al statement  adapted  to  the  business  done  by  such  company. 

Company^ ^0  SECTION  173.  Any  sucli  Company  which  neglects  to  ap- 

to?ecover^  point  a general  agent  agreeably  to  the  provisions  of  section 

premiums, 

&c.  M one  hundred  and  seventy,  shall  not  recover  any  premium  or 

G.  S.  58,  § 7Z. 

6 G^ay’  73^  asscssmcnt  made  by  it  on  any  contract  of  insurance  with  a 

pGravi  206.  citizcn  of  tliis  State  until  such  provisions  are  complied  with. 

1 Allen,  436.  r-  i - 

2 Allen,  398. 

10  Allen, 231. 

[Brokers.] 

Insurance  Section  174.  Whoever  acts  or  aids  in  any  manner  in 

broker,  what 

i869^^ST*i  ii6gc)tiating  contracts  of  insurance,  or  placing  risks,  or  effect- 
ing insurance,  for  any  person  other  than  himself,  receiving 
compensation  therefor,  and  is  not  the  officer,  agent  or  sub- 
agent of  the  company  or  companies  in  which  such  insurance 
is  effected,  shall  be  deemed  to  be  an  insurance  broker. 

Not  to  act  Section  175.  No  person  shall  act  as  an  insurance  broker 

without  au- 

iSLc^*^  until  he  has  procured  a certificate  of  authority  so  to  act, 
from  the  Insurance  Commissioner.  Such  certificate  shall 

1869,  93,  § 2. 

authorize  the  person  named  therein  to  negotiate  contracts  of 
insurance,  or  place  risks,  or  effect  insurance  with  any  insur- 
ance company  established  in  this  Commonwealth,  or  its  agents, 
and  with  the  agents  of  any  insurance  company  not  incorpo- 
rated in  this  Commonwealth,  which  has  complied  with  all  of 
the  laws  thereof,  and  is  duly  authorized  to  do  business  there- 

proviso.  in : provided,  such  agents  have  duly  given  bond  to  make  re- 
turns and  pay  taxes,  and  have  complied  with  all  other  require- 
ments of  said  laws.  Whoever  assumes  to  act  as  an  insurance 
broker  otherwise  than  as  aforesaid,  shall  be  held  to  be  an  in- 
surance agent,  and  subject  to  all  the  duties,  requisitions,  lia- 
bilities and  penalties  set  forth  in  the  laws  relating  to  such 
agents. 


215 


COMPANIES  OP  OTHER  STATES  AND  COUNTRIES.  57 

Section  176.  The  Insurance  Commissioner  shall  grant  Limit  of  au- 

tnority  to 

certificates  of  authority  as  aforesaid,  which  shall  continue  in  ig69,93,§3. 
force  until  the  first  day  of  April  next  after  the  date  thereof, 
and  shall  be  renewed  on  said  day  and  annually  thereafter. 

For  each  certificate  so  granted,  and  for  each  renewal  thereof,  Fee. 
there  shall  be  collected  and  paid  into  the  treasury  of  the 
Common  wealth,  the  sum  of  ten  dollars. 

Section  177.  Whoever  violates  any  of  the  provisions 
this  act  shall  be  punished  by  a fine  not  exceeding  five  hun- 
dred dollars. 


[Agents.] 

Section  178.  Whoever  solicits  insurance  on  behalf  of 
any  insurance  company  not  chartered  by  and  not  established 

5 Gray,  497. 

within  this  Commonwealth,  or  transmits  for  any  person  other 
than  himself  an  application  for  insurance,  or  a policy  of  in- 
surance  to  or  from  such  company,  or  advertises  that  he  will  569. 

^ ’ 3 Allen,  213. 

receive  or  transmit  the  same,  shall  be  held  to  be  an  agent  of  s® °t’ 201’. 

such  company,  to  all  intents  and  purposes,  and  subject  to  all 
the  duties,  requisitions,  liabilities  and  penalties  set  forth  in 
the  laws  of  this  Commonwealth  relating  to  insurance  com- 
panies not  incorporated  by  the  legislature  thereof. 

Section  179.  No  person  shall,  as  agent  of  any  fire,  ma-  Agents  of 
rine,  or  fire  and  marine  insurance  company,  not  incorporated  ^ne  co’mpa- 
under  the  laws  of  this  Commonwealth,  make  or  cause  to  be 

1862,  224,  § 

made  any  insurance  in  this  Commonwealth,  until  he  has  geepgcts. 
given  a bond  to  the  Treasurer  of  the  Commonwealth,  with 
sufficient  sureties  to  be  approved  by  said  Treasurer,  in  the 
sum  of  two  thousand  dollars,  with  condition  that  he  will  pay, 
as  provided  by  the  laws  of  this  State,  tlie  taxes  imposed  by 
said  laws  upon  all  premiums  charged  or  received  or  collected 
by  him,  or  under  his  authority,  for  the  company  or  compa- 
nies of  which  he  is  the  agent.  Any  person  making  insur-  Penalty. 

8 


216 


58 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


Agents  of 
other  com- 
panies also 
to  give  bond 
G.S  58,  §69 
See  seers. 
195,  196. 


Officers, 
agents  and 
sub-agents, 
to  procure 
certificate  of 
authority 
from  (he  In- 
surance 
Commission- 
er for  each 
company, 

1867,267,  § 5. 


Continuance 
and  renewal 
thereof. 


May  be  re- 
voked. 


ance,  or  causing  insurance  to  be  made  in  violation  of  the 
provisions  of  this  section,  shall  be  liable  to  pay  a fine  not 
exceeding  one  thousand  dollars. 

Section  180.  Every  agent  of  an  insurance  company  not 
incorporated  by  the  legislature  of  this  Commonwealth  and 
doing  business  therein,  excepting  agents  of  companies  in- 
cluded in  the  provisions  of  the  preceding  section,  shall,  be- 
fore any  business  is  done  by  him  for  said  company,  give  a 
bond  to  the  Treasurer,  with  one  or  more  sureties  to  be  ap- 
proved by  him,  in  the  sum  of  one  thousand  dollars,  with 
condition  that  he  will  on  or  before  the  fifteenth  day  of 
November  in  each  year  make  return  on  oath  to  the 
Treasurer  of  the  amounts  insured  by  him,  the  premiums 
received,  and  assessments  collected,  during  the  year  ending 
on  the  thirty-first  day  of  the  October  preceding,  and  at  the 
same  time  pay  to  the  Treasurer  the  taxes  provided  by  law. 

Section  181.  No  officer,  agent  or  sub-agent  of  any  in- 
surance company  not  incorporated  in  this  Commonwealth, 
shall  act  or  aid  in  any  manner  in  transacting  the  business 
of  insurance  of  or  with  such  company,  or  placing  risks  or 
effecting  insurance  therein,  without  first  procuring  from  the 
Insurance  Commissioner  a certificate  of  authority  so  to  do, 
for  each  company  for  which  he  proposes  to  act,  which  shall 
state  in  substance  that  such  company  is  duly  authorized  to 
do  business  in  this  State  under  the  laws  thereof,  and  that 
such  agent  or  other  person  has  duly  complied  with  the  laws 
relating  to  the  agents  of  such  companies.  The  Commis- 
sioner, upon  being  satisfied  of  the  facts  to  be  stated  tlierein, 
shall  grant  such  certificate,  which  shall  continue  in  force  un- 
til the  first  day  of  April  next  after  the  date  thereof,  unless 
sooner  revoked  by  the  Commissioner  for  non-compliance  with 
the  laws  aforesaid,  and  shall  be  renewed  on  said  day  and  an- 
nually thereafter,  so  long  as  the  company  and  its  agents  con- 


217 


COMPANIES  OF  OTHER  STATES  AND  COUNTRIES. 

tinue  to  comply  with  said  laws.  For  such  certificate,  so 
granted,  and  for  each  renewal  thereof,  the  company  named 
therein  shall  pay  into  the  treasury  the  sum  of  two  dollars. 
Whoever  violates  the  provisions  of  this  section  shall  be  pun- 
ished by  a fine  not  exceeding  five  hundred  dollars  for  each 
offence. 

Section  182.  Every  person  acting  for  an  insurance  com- 
pany not  incorporated  in  this  State  shall  exhibit  in  conspicu- 
ous letters  on  the  sign  designating  his  place  of  business,  the 
name  of  the  State  under  whose  authority  the  company  he 
represents  has  been  incorporated.  And  said  company  and 
agent  shall  also  have  printed  in  large  type  the  name  of  such 
State  and  the  kind  of  office,  whether  chartered  as  a mutual 
or  stock  company,  upon  all  policies  issued  to  citizens  of  this 
State,  on  all  cards,  placards,  and  pamphlets,  and  in  all  adver- 
tisements published,  issued  or  circulated,  in  this  State,  by  it 
or  him,  relating  to  the  business  of  such  company. 

Section  183.  No  person  shall  act  as  agent  of  an  in- 
surance company  not  incorporated  in  this  State,  until  he  has 
complied  with  all  the  requirements  of  the  laws  of  this  State 
relating  to  such  companies  and  their  agents  ; and  every  per- 
son so  acting  without  such  compliance,  or  who  knowingly 
procures  payment  or  any  obligation  for  the  payment  of  any 
premium  for  insurance,  by  fraudulent  representations,  sliall 
be  punished  by  a fine  not  exceeding  one  thousand  dollars  for 
each  offence. 

Section  184.  Every  agent  of  such  insurance  company 
neglecting  to  make  the  returns  required  by  law,  shall  forfeit 
twenty-five  dollars  for  each  neglect,  to  be  recovered  by  the 
Treasurer  of  the  Commonwealth.  Every  agent  so  neglect- 
ing shall  be  immediately  notified  thereof  by  the  Treasurer : 
and  if  he  continues  said  neglect  for  ten  days  after  such 
notice  is  deposited  in  the  post-office,  he  shall  forfeit  five  hun- 


59 


Fee. 


Penalty. 


Location  and 
kind  of  com- 
pany, how  to 
be  advertised 
to  the  public. 
G.S.58,  §73. 
See  sect.  216. 


Not  to  act 
until  laws 
are  complied 
with,  nor  to 
procure  in- 
surance by 
fraud. 

G.S  58,  § 74. 
See  sect.  202. 
Penalty. 


Penalty  for 
neglect  to 
make  re- 
turns. 

G.S.58,  §76. 
See  sects. 
179, 180. 


60 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


ProTiso. 


Company 
not  comply- 
ing with  law 
bound  by  its 
contracts, 
but  agent  li- 
able to  fine. 
G.8.58,  §72. 
3 Gray,  215. 
6 Gray,  73, 
75,  204,  288, 
376. 

8 Gray,  200. 

1 Allen,  436. 

2 Allen,  398. 
10  Allen, 231. 

Agent  per- 
sonally liable 
on  such  con- 
tracts. 
1864,114,  § 2. 
See  sect.  170. 


Agent  per- 
sonally liable 
for  taxes  if 
not  paid  by 
company. 
1864,114,  § 3. 
See  sects. 
192-196. 


When  to  be 
filed  by  com- 
panies of 
other  States. 
Form  of. 

G.  S.  58,  §§ 
25,  71. 
1867,267,  §§ 
2,3. 

See  sects. 
197,  207-214. 


dred  dollars  for  every  such  neglect,  to  be  recovered  by  the 
Treasurer  : provided^  that  no  agent  shall  be  held  liable  if  it  is 
made  to  appear  to  the  satisfaction  of  the  Treasurer  that  the 
returns  were  duly  made  and  deposited  by  said  agent  in  the 
post-office,  properly  directed  to  the  Insurance  Commissioner, 
and  that  there  was  no  neglect  on  bis  part. 

Section  185.  If  insurance  is  made  by  such  insurance 
company  without  complying  with  the  requisitions  of  the  laws 
of  this  State,  the  contract  shall  be  valid ; but  the  agent 
making  the  insurance  shall  be  liable  to  a fine  not  exceeding 
one  thousand  dollars  for  each  offence. 

Section  186.  The  agent  of  any  such  insurance  company 
which  does  not  comply  with  the  laws  of  this  Commonwealth 
as  to  the  appointment  of  a general  agent,  the  filing  of  said 
appointment,  and  the  continuance  of  such  agency,  shall  be 
personally  liable  on  all  contracts  of  insurance  made  by  or 
through  him,  directly  or  indirectly,  for  and  in  behalf  of  any 
such  company. 

Section  187.  The  agent  of  any  such  insurance  company 
which  neglects  to  pay  the  taxes  imposed  on  such  company 
by  the  laws  of  this  Commonwealth,  shall  be  personally  liable 
therefor,  and  the  same  may  be  recovered  of  him  in  an  action 
of  tort  in  the  name  of  the  Commonwealth. 

[Annual  State:ments.] 

Section  188.  The  general  agent  of  every  insurance  com- 
pany chartered  or  organized  in  any  other  State  of  the  United 
States,  and  doing  business  in  this  Commonwealth,  shall,  on 
or  before  the  fifteenth  day  of  January  in  each  year,  transmit 
to  the  Insurance  Commissioner,  and  file  in  his  office,  a state- 
ment* of  its  business,  standing  and  affairs  in  the  form  pre- 

* The  provision  of  the  General  Statutes,  (chap.  58,  § 71,)  requiring 
the  publication  of  a copy  of  this  statement  in  newspapers  in  each  county 
in  which  the  company  has  an  agency,  is  repealed  by  Acts  of  18G7,  chap. 
2G7,  § 7. 


219 


COMPANIES  OF  OTHER  STATES  AND  COUNTRIES.  61 

scribed  or  autliorized  by  law  and  adapted  to  the  business 
done  by  such  company,  signed  and  sworn  to  by  the  president 
and  secretary,  and  made  out  for  the  year  ending  on  the  pre- 
ceding thirty- first  day  of  December. 

Section  189.  All  foreign  insurance  companies,  associa- 

tions,  partnerships,  firms  or  individuals,  whether  incorporated  filed  by  com- 
panies of 

or  not,  transacting  the  business  of  fire,  marine  or  life  insur-  foreign coun- 

' ~ j tries. 

ance,  or  any  other  kind  of  insurance,  in  this  State,  shall,  in  g°s“oM^5! 
the  month  of  November  in  each  year,  return  full  annual  2. 3.’  ’ 

statement  of  their  condition  and  affairs  to  the  Insurance 

207-214  * 

Department,  made  out  at  the  home  office  for  the  preceding 
calendar  year,  in  the  same  manner  and  in  the  same  form, 
without  erasure  or  addition,  (except  necessary  explanation,) 
and  subject  to  the  same  liabilities  as  similar  companies  or 
associations  organized  under  the  laws  of  this  State,  which 
statement  shall  be  verified  and  sworn  to  before  some  consul 
• or  vice-consul  of  the  United  States,  by  two  or  more  of  the 

principal  officers  of  such  insurance  companies.  Supplemen-  when  to  bo 

filed  by 

tary  annual  statements  of  the  business  and  condition  of  their  American 

DJT£LtlCXl€S* 

American  branches  shall  also  be  filed  within  the  time,  and 
made  out  for  the  period  required  of  companies  in  the  United 
States. 

Section  190.  In  case  of  neglect  or  refusal  to  make  such  Liability  for 

neglect  to 

annual  statements  as  provided  in  the  preceding  section,  all 
persons  acting  in  this  State  as  agents,  or  otherwise,  in  trans-  ^ 

acting  the  business  of  insurance  for  said  companies,  associa- 
tions, partnerships,  firms  or  individuals,  shall  be  subject  to 
the  same  penalties  provided  by  law  in  case  of  the  failure  of 
any  insurance  company  or  association,  organized  under  the 
laws  of  this  State,  to  make  an  annual  statement  as  now 
required  by  law. 

Section  191.  Any  violation  of  the  provisions  of  the  two  Penalties. 

1870,349,  §4. 

preceding  sections  shall  subject  the  party  guilty  of  such  vio- 


220 


62 


Companies  of 
other  States 
to  pay  two 
per.  cent,  on 
premiums. 
1862,224,  § 2. 
See  sect.  203. 


Companies  of 
foreign  coun- 
tries, four 
per  cent. 
1862,224,  § 2. 
See  sect.  203. 


Taxes,  when 
payable. 
1862,224,  § 2. 
1870,391,  § 1. 
See  sect.  203. 


Not  liable  to 
other  tax. 


Reciprocal 
taxes,  &c., 
imposed  on 
companies  of 
other  States. 
Q.S.58,  §70. 
1870,391,  § 1. 


INSURANCE  LAWS  OF  MASSACHUSETTS. 

latioii,  to  a penalty  of  five  hundred  dollars  for  each  violation, 
to  be  sued  for  and  recovered  in  the  manner  provided  for  the 
prosecution  and  recovery  of  penalties  prescribed  by  the  in- 
surance laws  of  this  State. 


[Taxes,  Fees,  &c.] 

Section  192.  Each  fire,  marine,  and  fire  and  marine  in- 
surance company  incorporated  by  any  other  State  of  the 
United  States,  shall  annually  pay  to  the  Treasurer  of  the 
Commonwealth  a tax  of  two  per  cent,  upon  all  premiums 
charged  or  received  on  contracts  made  in  this  Commonwealth 
for  the  insurance  of  property,  or  received  or  collected  by 
agents  in  this  Commonwealth. 

Section  193.  Each  fire,  marine,  and  fire  and  marine  in- 
surance company  incorporated  or  associated  under  the  laws 
of  any  government  or  State  other  than  one  of  the  United 
States,  shall  annually  pay  to  the  Treasurer  of  the  Common- 
wealth a tax  of  four  per  cent,  upon  all  premiums  charged  or 
received  on  contracts  made  in  this  Commonwealth  for  the 
insurance  of  property,  or  received  or  collected  by  agents  in 
this  Commonwealth. 

Section  194.  The  aforesaid  taxes  shall  respectively  be 
assessed  by  the  Treasurer  of  the  Commonwealth  for  the  year 
ending  October  thirty-first,  and  shall  be  paid  within  ten  days 
after  the  first  Monday  in  December,  in  each  year ; and  no 
other  tax  shall  be  assessed  upon  such  insurance  companies 
so  long  as  the  two  preceding  sections  continue  in  force. 

Section  195.  When,  by  the  laws  of  any  other  State,  any 
taxes,  fines,  penalties,  deposits  of  money,  or  of  securities,  or 
other  obligations  or  prohibitions,  are  imposed  upon  insur- 
ance companies  incorporated  or  organized  under  the  laws  of 
this  State,  and  transacting  business  in  such  other  State,  or 
upon  the  agents  of  such  insurance  companies,  so  long  as 


COMPANIES  OF  OTHER  STATES  AND  COUNTRIES. 


63 


such  laws  continue  in  force,  the  same  taxes,  fines,  penalties, 
deposits  and  obligations  shall  be  imposed  upon  all  insur- 
ance companies  doing  business  in  this  State  which  are  incor- 
porated or  organized  under  the  laws  of  such  other  State,  and 
upon  their  agents. 

Section  196.  Insurance  companies  transacting  business 
in  this  State  whose  charters  or  other  powers  are  derived  from 
governments  or  authorities  out  of  the  United  States,  except- 
ing companies  included  in  the  provisions  of  section  one  hun- 
dred ninety-three,  shall  through  their  agents  in  this' State,  in 
lieu  of  the  relative  taxes  herein  before  indicated,  be  subject 
to  the  payment  annually  of  a tax  of  one  per  cent,  on  all 
premiums  and  assessments  collected  by  the  agents  of  such 
companies. 

Section  197.  Every  insurance  company  not  incorporated 
in  this  Commonwealth,  applying  for  admission  to  do  business 
therein,  shall  pay  into  the  treasury,  for  filing  copy  of  its 
charter  or  deed  of  settlement,  the  sum  of  thirty  dollars  ; for 
filing  statement  preliminary  to  admission,  and  for  filing 
each  annual  statement  after  admission,  the  sum  of  twenty 
dollars. 

[Miscellaneous.] 

Section  198.  Whenever,  after  setting  aside  a sum  equal 
to  the  premiums  for  the  unexpired  term  on  existing  risks, 
the  cash  assets  of  any  fire  insurance  company  not  incor- 
porated by  the  legislature  of  this  Commonwealth  and  having 
a specific  capital,  do  not  amount  to  more  than  three-fourths 
of  its  original  capital,  the  company  shall,  by  assessing  the 
stock  for  the  difference,  repair  its  capital  to  the  original 
amount.  No  such  company  shall  be  permitted  to  do  business 
in  this  Commonwealth  unless  it  complies  with  the  provisions 
of  this  section. 


Companies 
of  foreign 
countries, 
excepting, 
&c.,  to  pay- 
one  per  cent, 
on  pre- 
miums. 
G.S.58,§70. 
See  sect.  200. 


Fees  for  fil- 
ing copy  of 
charter  and 
statements. 
1867,267,  J 4. 


Capital, 
when  to  be 
repaired. 

Not  to  do 
business,  un- 
less, &c. 
1863,  249,  H 
7,  10. 

See  sects. 

98,  215. 


64 


INSURANCE  LAWS  OF  MASSACnUSETTS. 


Liability  to 
suit  and  at- 
tachment. 

G.S  63. § 15 
10  Mass.  91. 
16  Pick.  274. 
3 Met.  420, 
564. 

6 Met.  391. 

8 Gray,  199. 


Laws  relat- 
ing to  com- 
panies of 
foreign  coun- 
tries, to  em- 
brace those 
not  incorpo- 
rated. 

1867,267,  § 1. 
See  sect  169. 


Section  199.  Insurance  companies  created  by  any  other 
State,  having  property  in  this  State,  shall  be  liable  to  be  sued 
and  their  property  shall  be  subject  to  attachment  in  like 
manner  as  residents  of  other  States  having  property  in  this 
State  are  liable  to  be  sued  and  their  property  to  be  attached. 

Section  200.  The  provisions  of  all  general  laws  relating 
to  insurance  companies  chartered,  incorporated  or  associated 
in,  or  under,  the  laws  of  any  foreign  country,  are  hereby  ex- 
tended to  all  companies,  associations  and  individuals  formed 
or  associated  in  foreign  countries  and  doing  an  insurance 
business  in  this  State,  whether  incorporated  or  not. 


ANNUAL  STATEMENT. 


65 


GENERAL  PROVISIONS  RELATING  TO  ALL  INSURANCE  COM- 
PANIES DOING  BUSINESS  IN  THIS  COMMONWEALTH, 
WHEREVER  CHARTERED  OR  ORGANIZED. 

[Agents.] 

Section  201.  Whoever  solicits  insurance  on  behalf  of 
any  fire  or  life  insurance  company,  [whether]  chartered 
in  this  Commonwealth  [or  elsewhere]  or  transmits  for  any 
person  other  than  himself,  an  application  for  insurance,  or  a 
policy  of  insurance,  to  or  from  said  company,  or  advertises 
that  he  will  receive  or  transmit  the  same,  shall  be  held  to  be 
an  agent  of  such  company  to  all  intents  and  purposes,  and 
within  the  meaning  of  the  following  section,  unless  it  can  be 
shown  that  he  receives  no  commission,  or  other  compensa- 
tion or  consideration,  for  such  service,  from  said  company. 

Section  202.  An  agent  making  insurance  in  violation  of 
any  law  of  this  State  regulating  insurance  companies,  shall 
forfeit  for  each  offence  a sum  not  exceeding  one  thousand 
dollars. 


[Taxes  and  Fees.] 

Section  203.  Every  corporation  or  association  of  persons 
neglecting  to  pay  the  taxes  imposed  by  sections  forty-three, 
forty-seven,  one  hundred  ninety-two  and  one  hundred  ninety- 
three,  as  herein  before  provided,  shall  be  liable  for  the  same 
with  costs  and  interest  in  an  action  of  contract  in  the  name 


* This  section,  so  far  as  it  relates  to  agents  of  companies  not  incor- 
porated in  this  State,  is  superseded  by  section  178,  page  57,  which  is  a 
later  enactment.  Tlie  receipt  of  compensation  is  not  material  upon  the 
question  of  agency  in  such  companies. 

' 9 


Who  to  be 

deemed 

agents. 

1861,  170. 

5 Gray,  497. 

6 Gray,  204. 
13  Gray,  79. 

1 Allen,  436. 

2 Allen,  1, 
569. 

3 Allen,  213. 
9 Allen,  231. 
See  sect.  178. 


Penalty  for 
violation  of 
law  by 
agents. 

G.S.58,5  77. 


Companies 
neglecting  to 
pay  taxes, 
liable  to  suit 
and  injunc- 
tion. 

1862,  224,  § 
11. 

1870,391,  § 1. 
See  sects  49, 
194. 


6G 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


Fee  for  valu 
ation  of  life 
policies. 
U.S.58,  §64 
See  sects.  2, 
9. 


Fee  for  cer- 
tiflcate  of 
valuation. 
1870,349,  § 8. 
See  sects.  2, 
9. 


Fees  for 
copies. 
1867,267,  § 6. 


Form  for 
joint  stock 
companies. 
G.  S.  58,  A. 
See  sect.  211. 


of  the  Commonwealth  at  the  suit  of  the  Treasurer,  and  shall 
be  further  liable,  on  application  of  the  Treasurer  of  the  Com- 
monwealth therefor  to  any  one  of  the  justices  of  the  supreme 
judicial  court,  to  injunction  restraining  said  corporation  or 
association  and  the  agents  thereof,  from  the  further  prosecu- 
tion of  its  business  until  all  taxes  dde  as  aforesaid  with  costs 
and  interest  are  fully  paid. 

Section  204.  Every  insurance  company  doing  business 
in  this  Commonwealth  shall  annually  pay  into  the  treasury 
of  the  same,  by  the  way  of  compensation  for  the  valuation  of 
its  policies,  one  cent  on  every  thousand  dollars  insured  by  it 
on  lives. 

Section  205.  For  each  certificate  of  the  valuation  of  the 
outstanding  policies  of  any  insurance  company  doing  busi- 
ness in  this  Commonwealth,  there  shall  be  paid  the  sum  of 
two  dollars,  to  be  collected  by  the  Insurance  Commissioner 
and  paid  into  the  treasury. 

Section  206.  For  each  copy  of  a paper  filed  in  the  office 
of  the  Insurance  Commissioner  there  shall  be  paid  at  the 
rate  of  twelve  cents  a page,  and  for  certifying  the  same  the 
sum  of  one  dollar.  Said  fees  shall  be  collected  by  the  Com- 
missioner and  paid  into  the  treasury. 


[Annual  Statements.] 

Section  207.  The  form  of  annual  statement  for  insur- 
ance companies  with  specific  capitals,  shall  be  as  follows : 

1.  State  the  name  of  the  company.  2.  Where  located.  3. 
When  incorporated.  4.  Amount  of  capital.  5.  Amount  of 
capital  actually  paid  in.  6.  Number  of  shares  and  par  value  of 
each.  7.  Amount  of  fire  risks  outstanding.  8.  Amount  of 
marine  risks  outstanding  9.  Total  amount  of  outstanding  risks. 
10.  Amount  of  United  States  stock  or  treasury  notes  owned  by 
the  company ; state  amount  of  each  kind,  and  par  value  and 


225 


ANNUAL  STATEMENTS. 


67 


market  value  of  each.  11.  Amount  of  State  stocks;  state 
amount  of  each  kind,  and  par  value  and  market  value  of  each. 

12.  Amount  of  bank  stocks ; state  amount  of  each  kind,  and 
par  value  and  market  value  of  each.  13.  Amount  of  railroad 
stocks ; state  amount  of  each  kind,  and  par  value  and  market 
value  of  each.  14.  Amount  of  railroad  bonds ; state  amount 
of  each  kind,  and  par  value  and  market  value  of  each.  15.  Cash 
value  of  real  estate  owned  by  the  company.  16.  Amount  of 
cash  on  hand.  17.  Amount  of  cash  in  hands  of  agents.  18. 

Am  ount  loaned  on  mortgage  of  real  estate.  19.  Amount  loaned 

^on  collateral.  20.  Amount  loaned  without  collateral.  21. 
Amount  of  all  other  investments.  22.  Amount  of  premium 
notes  on  risks  terminated.  23.  Amount  of  borrowed  money, 
specifying  collaterals  given  for  the  same.  24.  Amount  of  losses 
due  and  unpaid.  25.  Amount  of  losses  claimed  and  unpaid.  26. 
Amount  of  losses  reported,  upon  which  the  liability  of  the  com- 
pany is  not  determined.  27.  Amount  of  all  other  claims  against 
the  company.  28.  Amount  of  cash  received  for  premiums  on 
fire  risks.  29.  Amount  of  cash  received  for  premiums  on  marine 
risks.  30.  Amount  of  notes  received  for  premiums  on  fire  risks. 

31.  Amount  of  notes  received  for  premiums  on  marine  risks. 

32.  Amount  of  cash  received  for  interest.  33.  Amount  of  in- 
come received  from  all  other  sources.  34.  Amount  of  fire  losses 
paid  last  year.  35.  Amount  of  marine  losses  paid  last  year. 

36.  Amount  of  dividends  paid  the  last  year.  37.  Amount  paid 
for  expenses  of  office.  38.  Amount  of  other  expenditures. 

. 39.  Amount  received  in  cash  for  fire  risks  not  terminated.  40. 
Amount  required  to  re-insure  all  outstanding  risks.  41.  Amount 
of  premium  notes  on  risks  not  terminated.  42.  Amount  of  de- 
linquent notes  not  charged  to  profit  and  loss.  43.  Highest  rate 
of  interest  received.  44.  Highest  rate  of  interest  paid  on  money 
borrowed.  45.  How  many  shares  of  the  capital  stock  are 
pledged  to  the  company.  46.  Balance  to  credit  of  profit  and 
loss  account.  47.  Balance  to  debit  of  profit  and  loss  ac- 
count. 48.  How  many  shares  of  the  capital  stock  are  owned 
by  the  company,  or  not  subscribed  for.  49.  What  amount  of 
the  capital  consists  of  the  stockholders’  notes. 

Section  208.  The  form  for  mutual  marine,  and  mutual  Form  for 


fire  and  marine  insurance  companies,  shall  be  as  follows  : 


mutual  ma- 
rine, and 
mutual  fire- 


226 


68 


marine  c 
panies 
G.  S.  58, 
1860,156, 
See  sect.  1 


INSURANCE  LAWS  OF  MASSACHUSETTS. 

1.  Name  or  title  of  the  company.  2.  Where  located.  3. 
When  incorported.  4.  For  what  period.  5.  Amount  invested 
211.  in  United  States  funded  debt,  Avith  the  amount  of  each  kind 
owned  ; state  par  value  and  market  value,  per  share.  6.  Amount 
of  United  States  treasury  notes  owned ; state  par  value  and 
market  value,  per  share.  7.  Amount  invested  in  State  stocks, 
with  the  amount  of  each  kind  OAvned ; state  par  value  and 
market  value  per  share.  8.  Number  of  shares  OAvned  in  each 
bank  wdiich  are  not  pledged;  state  par  value  and  market  value, 
per  share.  9.  Number  of  shares  OAvned  in  each  railroad;  amount 
inA^ested  in  each,  at  cost  on  books  ; state  par  value  and  marked' 
value,  per  share.  10.  Amount  received  in  railroad  bonds,  and 
amount  of  each  kind,  at  cost  on  books ; state  par  value  and  mar- 
ket value,  per  share.  11.  Amount  invested  in  real  estate,  as  it 
stands  on  the  books  of  the  company.  12.  State  specifically  all 
other  investments  or  property.  13.  Cash  on  hand.  14.  Cash 
in  hands  of  agents.  15.  Amount  loaned  on  mortgage  of  real 
estate.  16.  Amount  loaned  on  notes  secured  by  collaterals  of 
personal  ^woperty.  17.  Amount  loaned  on  notes  without  col- 
lateral security.  18.  Amount  of  stock  notes  on  hand  not  OA^er- 
due.  19.  Amount  of  stock  notes  on  hand  that  are  past  due. 
20.  Amount  of  premium  notes  on  risks  terminated.  21.  Amount 
of  premium  notes  on  risks  not  terminated.  22.  Amount  of  de- 
linquent premium  notes  not  charged  to  profit  and  loss.  23. 
Amount  of  scrip  issued  for  profits  which  remains  outstanding. 
24.  Amount  of  debts  due  the  company  other  than  those  before 
enumerated:  state  particularly  their  respective  amounts  and 
origin.  25.  Amount  of  marine  risks  not  terminated.  26. 
Amount  of  fire  risks  not  terminated.  27.  Amount  received  in 
cash  for  fire  risks  not  terminated.  28.  State  the  highest  rate  of 
interest  received.  29.  Amount  received  for  interest.  30.  State 
the  highest  rate  of  interest  paid  for  money  borroAved.  31. 
Amount  paid  for  interest.  32.  State  the  amount  borroAv^ed 
which  remains  unpaid,  and  state  particularly  the  collateral  given 
for  each  loan.  33.  Amount  of  fire  losses  paid  the  past  year. 
34.  Amount  of  marine  losses  paid  the  past  year.  35.  Amount 
of  losses  ascertained  and  unpaid.  36.  Amount  of  losses  claimed 
other  than  those  ascertained  and  unpaid.  37.  Amount  of  ex- 
penses, taxes,  and  commissions,  paid  the  past  year. 


227 


ANNUAL  STATEMENTS. 


69 


Section  209.  The  form  for  mutual  fire  insurance  compa-  Form  for 

mutual  fire 

iiies  shall  be  as  follows.  All  companies  having  policies  in  g.TXc. 

1860  156  § 1 

separate  classes,  shall  in  their  answers  specify  the  respective 
amounts  in  each  class.  6 Gray,  73. 


1.  Kame  of  company.  2.  Where  located.  3.  When  incor- 
porated. 4.  Date  of  commencement  of  business.  5.  Amount 
insured  by  existing  policies.  6.  Amount  of  premiums  and.  de- 
posits on  same.  7.  Amount  of  premiums  on  same  received  in 
cash.  8.  Amount  of  United  States  and  State  stocks  or  notes; 
state  par  value  and  market  value  of  each.  9.  Amount  of  bank, 
stocks,  railroad  stocks  and  bonds ; state  number  of  shares  in. 
each  bank  and  railroad  comjoany,  and  par  value  and  market 
"s  alue  of  each.  10.  Cost  value  of  real  estate  owned  by  the  com- 
pany. 11.  Amount  loaned  on  mortgage  of  real  estate.,  12. 
Amount  of  other  investments.  13.  Cash  on  hand  and  in  bank. 
14.  Cash  in  hands  of  agents.  15.  Amount  of  assessments  re- 
garded good,  due  and  not  paid.  16.  Amount  of  losses  ascer-- 
tained  and  unpaid.  17.  Amount  of  other  losses  claimed.  18.. 
Amount  owed  for  borrowed  money,  and  on  what  securities..  19.. 
Amount  owing  for  dividends  on  expired  policies.  20.  Amount 
and  particulars  of  all  other  liabilities.  21.  Estimated  amount 
in  cash  required  to  re-insure  all  outstanding  risks.  22.  Amount 
of  polic’es  terminated  the  past  year.  23.  Amount  of  policies 
issued  the  past  year.  24.  Amount  of  premiums  received  in  cash 
the  past  year.  25.  Amount  of  premiums  received  in  notes  the 
past  year.  26.  Amount  received  on  assessments  the  past  year.. 
27.  Amount  received  for  interest,  including  dividends  on  stocks 
and  all  other  revenue  on  investments,  the  last  year.  28.  Amount 
of  losses  paid  the  last  year.  29.  Amount  of  cash  dividends  paid 
to  policy-holders  the  past  year.  30.  Amount  paid  in  cash  as 
return  premiums  on  policies  cancelled  the  past  year.  31. 
Amount  for  expenses,  taxes  and  commissions.  32.  State  the 
gain  or  loss  in  investment  account  arising  from  changes  in  mar- 
ket values  of  securities  the  past  year.  33.  Amount  assessed 
the  last  year.  34.  Amount  of  liability  to  future  assessment. 
35.  Highest  rate  of  interest  paid.  36.  Highest  rate  of  interest 
received.  37.  Amount  insured  on  real  estate.  38.  Amount 
insured  on  personal  estate.  39.  What  proportion  of  the  property 
insured  is  in  Massachusetts  ? 40.  What  proportion  of  the  losses 
was  on  property  in  Massachusetts  ? 


228 


70  INSURANCE  LAWS  OF  MASSACHUSETTS. 

SECTION  210.  Tlio  form  for  life  insurance  companies  shall 
be  as  follows  : 

1860,156,  § 2. 

See  sect.  211. 

1.  Name  of  the  company.  2.  When  chartered.  3.  For  what 
period.  4.  Where  located.  5.  State  in  full  the  assets  of  the 
company.  6.  Number  of  shares  owned  in  each  bank;  state  par 
value  and  market  value,  per  share.  7.  Number  of  shares  owned 
* in  each  railroad,  stating  the  corporate  name  of  each,  and  amount 
invested  in  each,  at  cost,  on  books ; state  par  value  and  market 
value,  per  share.  8.  Amount  owned  in  railroad  bonds ; state 
par  value  and  market  value,  per  share.  9.  Amount  invested  in 
real  estate,  at  cost,  on  the  books  of  the  company.  10.  Amount 
loaned  on  mortgages  of  real  estate.  11.  Amount  loaned  on 
notes  secured  by  collaterals  of  personal  property.  12.  i^mount 
loaned  on  notes  without  collaterals.  13.  State  in  full  all  other 
investments.  14.  How  much  included  in  the  foregoing  state- 
ments  of  assets  consists  of  premium  notes  on  policies  not  re- 
turned as  now  in  force  ? 15.  Number,  date,  and  amount  of  each 
outstanding  policy  not  heretofore  returned,  and  age  of  the  in- 
sured. 16.  Number,  date,  and  amount,  of  each  policy  which 
has  within  the  year  ceased  to  be  in  force,  how  terminated,  what 
has  been  paid  to  the  legal  holder  of  the  policy,  and  age  of  the 
insured.  17.  Amount  of  losses  ascertained  and  unpaid.  18. 
Amount  of  losses  claimed  against  the  company,  whether 
acknowledged  as  due  or  not  by  the  company.  19.  Amount  due 
from  the  company  on  its  declared,  promised,  or  acknowledged 
indebtedness  or  other  claims,  including  dividends,  bonuses  on 
distribution  of  surplus,  or  as  profits.  20.  Amount  received  for 
premiums  the  past  year.  21.  Amount  received  for  premiums 
in  cash.  22.  Amounts  received  for  premiums  in  promissory 
notes  or  securities.  23.  Amount  received  for  interest  the  past 
year.  24.  Amount  paid  for  interest  the  past  year.  25.  Amount 
of  guarantee  funds ; and  state  particularly  whether  the  same  are 
in  cash  or  subscription  notes.  26.  How  are  dividends,  distribu- 
tions of  surplus  funds,  bonuses  or  estimated  profits  paid,  whether 
in  cash,  scrip,  or  otherwise  on  credit,  and  whether  on  demand, 
or  if  on  credit,  for  what  length  of  time,  and  whether  payable  at 
a specific  time  or  indefinitely  at  the  discretion  of  the  company. 
27.  Amount  paid  for  expenses,  taxes  and  commissions,  the  past 
year. 


229 


MISCELLANEOUS  PROVISIONS. 


71 


Section  211.  The  Insurance  Commissioner  is  hereby  commis- 
sioner may 

authorized  to  amend  and  revise  the  forms  of  annual  state-  foregoing*'  ’ 
ment  herein  before  prescribed,  and  to  propose  such  addi- Sf267,5  3. 
tional  inquiries  as  are  necessary  to  elicit  a full  exhibit  of 
the  business  and  standing  of  tlie  various  insurance  compa- 
nies doing  business  in  this  Commonwealth. 

Section  212.  The  time  herein  before  prescribed  for  filing  May  extend 

^ time  for  fil- 

annual  statements,  may  be  extended  by  the  Commissioner 

in  favor  of  any  company  for  good  cause  shown,  but  not  See"sect3.  61, 

188^  ISd* 

beyond  the  first  day  of  the  month  next  after  the  date  herein 
before  specified  for  filing  the  same. 

Section  213.  Any  company  doing  business  in  this  State, 
neglecting  to  make  returns  in  the  manner  and  within  the 
time  herein  before  authorized  and  prescribed,  shall  forfeit  i867,267,§3! 

6 Gray,  73. 

one  hundred  dollars  for  each  day’s  neglect ; and  every  com-  raise  re- 
turns. 


pany  that  wilfully  makes  false  statements  shall  be  liable  to 
a fine  of  not  less  than  five  hundred  nor  more  than  one 
thousand  dollars.  'Any  new  business  done  by  any  company 
or  its  agents  in  this  State  after  neglect  to  make  the  pre- 
scribed returns,  shall  be  deemed  to  be  done  in  violation  of 
law.  * 

Section  214.  The  Insurance  Commissioner  shall  have  Commis- 
sioner may 

authority  to  prevent  the  publication  of  any  part  of  the  Statements 
annual  statements  of  the  life  insurance  companies,  until  panies‘!°“" 

1 • r.  • 1 ^ • • 1*^64,220, } 

such  time  as  the  annual  report  of  said  Commissioner  is 
made  to  the  legislature. 


[Miscellaneous.] 

Section  215.  When  the  actual  funds  of  any  life  insur-  ufe  insur- 

. , , ance  com- 

ance  company  doing  business  in  this  Commonwealth  are  not  panics  not  to 

^ issue  policies 

of  a net  casli  value  equal  to  its  liabilities,  counting  (as  such)  premium 
the  net  value  of  its  policies  according  to  the  Combined  impaired. 

^ 1863,  148. 

Experience,”  or  “Actuaries’  ” rate  of  mortality,  with  inter-  see  sects.  98, 


72 


INSURANCE  LAWS  OP  MASSACHUSETTS. 


Penalty. 


Companies 
to  conduct 
business  in 
corporate 
name  only. 
Policies. 

G.S  5S,  §24. 
See  sect.  182. 


Conditions  of 
insurance  to 
be  stated  in 
body  of 
policy. 

1861, 152. 
1864,196,  § 1. 
7 Allen,  42, 
132. 


est  at  four  per  centum  per  annum,  it  shall  be  the  duty  of  the 
Insurance  Commissioner  to  give  notice  to  such  company  and 
its  agents,  to  discontinue  issuing  new  policies  within  this 
Commonwealth  until  such  time  as  its  funds  have  become 
equal  to  its  liabilities,  valuing  its  policies  as  aforesaid.  Any 
officer  or  agent  who,  after  such  notice  has  been  given,  issues 
a new  policy  from  and  on  behalf  of  such  company  before  its 
funds  have  become  equal  to  its  liabilities  as  aforesaid,  shall 
forfeit  for  each  offence  a sum  not  exceeding  one  thousand 
dollars. 

Section  216.  Every  insurance  company  doing  business 
in  this  State  shall  conduct  the  same  in  the  proper  and 
corporate  name  of  said  company,  and  not  by  various  and 
different  names.  The  policies  and  contracts  of  insurance 
issued  by  any  company  shall  be  headed  or  entitled  only  by 
the  corporate  name  or  title  of  said  company. 

Section  217.  In  all  insurance  against  loss  by  fire  by 
companies  chartered  or  doing  business  in  this  Common- 
wealth, the  conditions  of  the  insurance  shall  be  stated  in 
the  body  of  the  policy,  and  neither  the  application  of  the 
insured  nor  the  by-laws  o£  the  company  shall  be  considered 
as  a warranty  or  a part  of  the  contract,  except  so  far  as 
they  are  incorporated  in  full  into  the  policy,  and  so  appear 
on  its  face,  before  the  signatures  of  the  officers  of  the  com- 


pany. 

Term  of  SECTION  218.  No  policy  sliall  be  issued  for  a term 

policy 

GgS  g^5  24.  exceeding  seven  years.  But  this  section  shall  not  apply  to 
See  sect.  38.  insurance  companies. 

Insurance  SECTION  219.  No  iusurancc  company  shall  deal  or  trade 

companies  , i 

&°c  buying  or  selling  goods,  wares,  merchandise,  or  other  like 

G.s.58,§23,  property,  excepting  such  articles  as  have  been  insured  by 
such  company,  on  which  losses  are  claimed  by  the  insured. 


MISCELLANEOUS  PROVISIONS. 


73 


Section  220.  The  governor  and  council  may  allow  such 
reasonable  compensation  for  services  rendered  and  expenses 
incurred  in  enforcing  the  laws  relating  to  insurance  compa- 
nies as  they  deem  proper. 


ProTision  for 
cost  of  en- 
forcing laws, 
G.S.58,§77. 


232 


1 


74 


INSURANCE  LAWS  OF  MASSACHUSETTS. 


PREVENTION  OF  FRAUDS  ON  INSURANCE  COMPANIES. 

S°infent  ^ECTiON  221.  Wlioever  wilfully  burns  a building  or  any 
insurer,  how  goods,  wares,  merchandise,  or  other  chattels,  which  are  at 

punished.  , . . 

G.s.  161,  §7.  the  time  insured  against  loss  or  damage  by  fire,  with  intent 
to  injure  the  insurer,  whether  such  person  is  the  owner  of 
the  property  burnt  or  not,  shall  be  punished  by  imprison- 
ment in  the  State  prison  not  exceeding  twenty  years. 

Destroying  SECTION  222.  Wliocver  wilfullj  casts  away,  burns,  sinks 
8ureT?how  or  otherwise  destroys  a ship  or  vessel  with  intent  to  injure 
s\*i6i,'  k or  defraud  an  insurer  of  such  ship  or  vessel,  or  of  any  prop- 
erty laden  on  board  the  same,  or  of  any  part  thereof,  shall 
be  punished  by  imprisonment  in  the  State  prison  for  life  or 
any  term  of  years. 

Fitting  out  Section  223.  Whoever  lades,  equips  or  fits  out,  or  assists 
deSd^in-  ill  lading,  equipping  or  fitting  out,  a ship  or  vessel,  with 
punShed.^  intent  that  the  same  shall  be  wilfully  cast  away,  burnt,  sunk 

G.  S.  161,  § 

or  otherwise  destroyed,  to  injure  or  defraud  an  insurer  of 
such  ship  or  vessel,  or  of  any  property  laden  on  board  the 
same,  shall  be  punished  by  imprisonment  in  the  State  prison 
not  exceeding  twenty  years,  or  fine  not  exceeding  five  thou- 
sand dollars  and  imprisonment  in  the  jail  not  exceeding 
three  years. 

Making  or  SECTION  224.  If  tlic  owiicr  of  a ship  or  vessel,  or  of 

procuring 

property  laden  or  pretended  to  be  laden  on  board  the  same, 
punished,  or  if  any  other  person  concerned  in  the  lading  or  fitting  out 
78-  ’ ^ of  a ship  or  vessel,  makes  out  or  exhibits,  or  causes  to  be 

made  out  or  exhibited,  a false  or  fraudulent  invoice,  bill  of 
lading,  bill  of  parcels,  or  other  false  estimates,  of  any  goods 
or  property  laden,  or  pretended  to  be  laden,  on  board  such 


233 


PREVENTION  OP  FRAUDS  ON  INSURERS.  75 

ship  or  vessel,  with  intent  to  injure  or  defraud  an  insurer  of 
such  ship,  vessel,  or  property,  or  of  any  part  thereof,  he 
shall  be  punished  by  imprisonment  in  the  State  prison  not 
exceeding  ten  years,  or  by  fine  not  exceeding  five  thousand 
dollars  and  imprisonment  in  the  jail  not  exceeding  two 
years. 

Section  225.  If  a master,  other  officer,  or  mariner,  of  a Making  or 

' ' ' procuring 

ship  or  vessel,  makes,  or  causes  to  be  made,  or  swears  to,  SFntent’ 
any  false  affidavit  or  protest,  or  if  an  owner  or  other  person  ^ 

concerned  in  such  ship  or  vessel,  or  in  the  goods  or  prop- 

erty  laden  on  board  the  same,  procures  any  such  false  affi- 

davit or  protest  to  be  made,'  or  exhibits  the  same,  with 
intent  to  injure,  deceive,  or  defraud  an  insurer  of  such  ship 
or  vessel,  or  of  any  goods  or  property  laden  on  board  the 
same,  he  shall  be  punished  by  imprisonment  in  the  State 
prison  not  exceeding  ten  years,  or  by  fine  not  ex(jgeding 
five  thousand  dollars  and  imprisonment  in  the  jail  not 
exceeding  two  years. 


76 


INSURANCE  LAWS  OP  MASSACHUSETTS. 


Jury  to  be 
summoned 
upon  com- 
plaint and 
certificate. 
1867,  303  § 1. 


Warrant, 
how  served. 


Oath  of 
jurors. 
1867,303,  § 2. 


INQUESTS  IN  CASES  OF  FIRE. 

Section  226.  When  property  is  destroyed  by  fire,  and  a 
complaint,  within  thirty  days  thereafter,  is  subscribed  and 
sworn  to  by  any  person  before  any  police  court,  or  any 
municipal  court,  or  any  trial  justice,  alleging  that  reasona- 
ble grounds  exist  for  believing  that  the  fire  was  caused  by 
design,  and  a majority  of  the  mayor  and  aldermen  or  select- 
men of  the  city  or  town  respectively  in  which  said  property 
is  situated  certify  in  writing,  that  in  their  opinion  the  same 
is  a proper  case  for  investigation,  such  court  or  justice  shall 
forthwith  issue  a warrant  to  a constable  of  the  place  where 
the  pi^crty  was  destroyed,  requiring  him  forthwith  to 
summon^six  good  and  lawful  men  of  the  county  to  appear 
before  the  court,  or  justice,  at  a time  and  place  expressed  in 
the  warrant,  to  inquire  when  and  by  what  means  the  fire 
originated  ; which  warrant  shall  be  served  and  returned  in 
the  manner  prescribed  in  section  three  of  chapter  one  hun- 
dred and  seventy-five  of  the  General  Statutes ; and  the 
constables  and  jurors  shall  be  subject  to  the  penalties 
therein  specified  for  similar  neglects.  If  any  person  so 
summoned  does  not  appear,  the  constable  shall  by  order  of 
the  justice  or  court,  return  some  person  from  the  by-stand- 
ers  to  complete  the  number. 

Section  227.  The  justice  or  court  shall  in  view  of  the 
spot  on  which  the  property  was  destroyed  administer  to  the 
persons  thus  summoned  or  returned  the  following  oath : 
“You  solemnly  swear,  that  you  will  diligently  inquire  and 
true  presentment  make,  on  behalf  of  this  Commonwealth, 
when  and  by  what  means  the  fire  which  has  here  occurred 


INQUESTS  IN  CASES  OF  FIRE. 


77 


was  caused,  and  that  you  will  return  a true  inquest  accord- 
ing to  your  knowledge  and  such  evidence  as  shall  be  laid 
before  you.  So  help  you,  God.” 

Section  228.  The  justice  or  court  may  issue  subp(nnas 
for  witnesses  returnable  forthwith  at  a time  and  place  there- 
in set  forth.  Their  attendance  may  be  enforced  in  like 
manner  as  if  they  had  been  subpoenaed  in  behalf  of  the 
Commonwealth. 

Section  229.  An  oath  to  the  following  effect  shall  be  oath  of  wit- 

^ nesses. 

administered  to  such  witnesses  : “ You  solemnly  swear,  that  i86(,303, §4- 
the  evidence  which  you  shall  give  to  the  inquest,  concerning 
the  origin  of  the  fire  of  which  inquiry  is  now  to  be  made, 
shall  be  the  truth,  the  whole  truth,  and  nothing  but  the 
truth.  So  help  you,  God.” 

Section  230.  The  testimony  shall  be  reduced  to  writing  Testimony, 

° how  taken. 

by  the  presiding  justice,  or  some  person  by  his  direction,  i867,303,§5. 
and  subscribed  by  the  witnesses. 

Section  231.  The  jury,  after  hearing  the  testimony  and 
making  all  needful  inquiry,  shall  draw  up  and  deliver  to  the 
justice  or  court  their  inquisition  under  their  hands,  in  which 
they  shall  find  and  certify  when  and  by  what  means  the  fire 
was  caused ; and  said  inquisition  and  testimony  thus  sub- 
scribed shall  within  one  week  thereafter,  be  filed  by  the 
magistrate  with  the  clerk  of  the  courts  for  the  county,  or  in 
the  county  of  Suffolk  with  the  clerk  of  the  municipal  court. 

Section  232.  The  fees  of  the  magistrate  and  the  ex-  costs. 

^ 1867,303,  $7. 

penses  of  the  inquisition,  shall  be  the  same,  and  be  returned,  s.  175,  § 
audited,  certified  and  paid  in  like  manner  as  is  provided 
for  coroners’  inquests. 


^ 236 


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INDEX. 


Page. 

ACCUMULATION,  limit  of,  before  scrip  becomes  redeemable,  . . .46,  47 

Accumulations,  of  mutual  marine  and  fire-marine  companies,  how  to  be 

invested, 9,  26,  27,  44 


ACTS  OF  INCORPORATION.  [-See  also  Charters  ] 

passed  since  March  11,  1831,  subject  to  amendment,  alteration  or  repeal 

by  the  Legislature, 22 

notice  to  be  given  of  applications  to  the  Legislature  for,  ....  5 

to  specify  amount  of  capital  stock  required, 5 

proof  of  publication  of, 5 

waiver  and  admission  of, 6 

petition  and  proof  of  notice,  when  to  be  presented  to  the  Legislature,  . 5 

time  extended  20  days  in  case  of  unavoidable  accident,  &c.,  . . 6 

ACTUARIAL  assistance  in  making  valuation  of  life  insurance  policies,  provi- 

sion  for, 1 

actuarial  services  of  the  Insurance  Commissioner,  compensation  for,  . 1 

“ACTUARIES’  ’’  RATE  OF  mortality,  prescribed  as  a standard  for  valuation 


in  certain  cases, 49,  51,  71,  72 

ADMINISTRATORS.  [See  Executors,  &c.] 

AGENTS  OF  INSURANCE  companies.  [See  General  Agent  and  Attorney, 
and  Sub-Agents.] 

who  may  be  deemed  such, 57,  65 

not  to  make  insurance  in  violation  of  any  law  of  this  State,  under  pen- 
alty, &c,, 65 

not  to  act  for  any  company  after  it  has  failed  to  make  its  annual  statement,  71 
not  to  issue  new  policies  of  life  insurance  in  certain  cases,  under  penalty,  &c.,  71 

may  be  summoned  and  examined  by  Insurance  Commissioner,  . . 2 

penalty  for  refusal  to  appear  and  testify, 2 

violations  of  law  by,  to  be  reported  by  the  Commissioner,  and  prosecuted 

by  the  Attorney-General, 3 

penalty,  and  personal  liability  of,  for  issuing,  &c.,  policy  extending  beyond 

the  term  of  any  charter  granted  in  this  State,  ....  10 

Or  COMPANIES  NOT  INCORPORATED  IN  THIS  State,  who  may  be  deemed 

such, 57 

may  be  required  by  Commissioner  to  exhibit  their  books  and  answer  inter- 
rogatories,   2 

penalty  for  refusal  or  neglect  to  answer  within  thirty  days,  . . 2 

to  be  furnished  by  the  Commissioner  with  blank  forms  for  returns,  . . 3 

to  give  bond  to  the  Treasurer  of  the  Commonwealth  to  make  returns  of 
business  done  by  or  through  them,  and  pay  the  taxes  imposed 

by  law, ’.  57,  58 

penalty  for  acting  before  giving  such  bond, 57,  58 

penalty  for  neglect  to  make  such  returns, 59,  60 

to  be  notified  of  such  neglect  by  the  Treasurer, 59 

11 


INDEX. 


Page. 

AGENTS  OF  COMPANIES  NOT  INCORPORATED  IN  THIS  STATE — Continued. 

not  liable  if  it  appears  that  the  returns  were  duly  made  and  mailed  to 

the  Insurance  Commissioner, 60 

personally  liable  for  the  taxes,  and  to  injunction,  if  the  company  fails 

to  pay  the  same, 60,  66 

to  procure  from  the  Commissioner  a certificate  of  authority  to  act  for  each 

company, 58 

penalty  for  acting  or  aiding  in  any  manner,  without  such  certificate,  . 59 

not  to  act  until  they  have  complied  with  all  requirements  of  law,  under 

penalty,  &c,, 59 

nor  until  the  companies  for  which  they  act  have  complied  with  the 

same,  under  penalty,  &c., 60 

to  exhibit  and  advertise  the  location  and  kind  of  each  company  repre- 
sented by  them  and  how,  . . . ^ 59 

not  to  procure  payment  for  insurance  by  fraudulent  representations,  under 

penalty,  &c., 59 

to  be  personally  liable  on  contracts  of  insurance  made  by  or  through  them, 
if  the  company  has  not  duly  appointed  a general  agent  and 

attorney  to  accept  service,  &c., 60 

to  be  subject  to  the  same  penalties,  obligations,  &c.,  as  are  imposed  on 
agents  of  companies  of  this  State,  by  the  laws  of  the  several 

States  to  which  their  companies  belong, 61 

AGREEMENT  of  subscription  to  safety  fund  of  mutual  marine  and  fire- 

marine  companies,  form  of,  &c.,  .......  43 

AMENDMENT,  alteration  or  extension  of  charters.  [See  Charters.] 
ANNUAL  REPORT  of  Insurance  Commissioner,  on  insurance  companies, 

when  and  how  to  be  made, 4 

to  include  abstract  of  returns  of  companies  and  their  agents,  ...  4 

and  results  of  valuation  of  policies  of  life  insurance,  ....  4 

and  reports  of  receivers  of  insurance  companies,  or  abstracts  the  . 
Commissioner  to  make  regarding  loan  fund  associations,  . 

and  of  all  the  receipts  and  expenditures  of  his  department, 

ANNUAL  STATEMENTS,  when  and  how  to  be  made  and  filed  by  insurance 


companies  incorporated  in  this  State, 17,  18 

b}'  companies  of  other  States  of  the  United  States,  ....  60 

by  companies  of  foreign  countries, 61 

supplementary,  by  American  branches  of  foreign  companies,  . . 61 

fees  for  filing, 63 

form  of,  for  joint-stock  companies, 66,  67 

for  mutual  marine,  and  mutual  fire-marine  companies,  . . .67,  68 

for  mutual  fire  companies, 69 

for  life  insurance  companies, 70 

how  to  be  signed  and  sworn  to, 17,  18,  61 

forms  prescribed  may  be  amended  and  revised  by  the  Commissioner,  and 

additional  inquiries  proposed, 71 

time  prescribed  for  filing  may  be  extended  by  Commissioner  for  cause, 

within  certain  limits, 71 

penalty  for  neglect  to  make,  as  required  by  law, 61,  71 

for  making  false  statements, 71 


new  business  done  after  neglect  to  make,  to  be  deemed  in  violation  of  law,  71 
of  life  insurance  companies,  may  be  withheld  by  the  Commissioner  until 
his  annual  report  is  published, 


71 


239 


INDEX.  81 

Page. 

ANNUAL  STATEMENTS— Con^inwec?. 

companies  classifying  their  risks,  to  return  the  respective  amounts  in  each 

class, 69 

stock  and  mutual  (combined)  companies  to  make  separate,  in  the  forms 
prescribed  for  joint-stock  and  mutual  fire  companies  respec- 
tively,   41 

APPLICATIONS  TO  the  Legislature.  [See  Acts  of  Incorporation, 
and  Charters.] 

To  THE  Supreme  Judicial  Court,  in  what  cases  may  be  made,  16,  18,  19,  20, 

36,  38,  66 

Of  the  insured,  not  to  form  part  of  policy  or  contract,  unless  incorporated 

in  body  of  the  policy,  before  the  signatures,  ....  72 

ASSESSMENTS,  in  Joint-Stock  Fire  Companies,  to  be  laid  on  the  stock- 
holders, when  the  capital  is  impaired  twenty-five  per  cent.,  . 29,  63 
In  Mutual  Fire  Companies,  provisions  concerning,  . . .34,  40 

collection  of  by  receivers  may  be  stayed  by  supreme  judicial  court,  . . 21 

ASSIGNMENTS  of  policies,  secretary  to  record, 24,  31,  43 

ATTORNEY  to  accept  service  of  process.  [See  General  Agent  and 
Attorney.] 

ATTORNEY-GENERAL,  to  prosecute  insurance  companies,  their  officers  and 

agents,  for  violation  of  law, 3 

may  prosecute  loan  fund  corporations  and  their  officers  for  the  same,  . 4 

BOND,  official,  to  be  given  by  Insurance  Commissioner,  in  sum  of  ten  thou- 
sand dollars,  with  sufficient  securities,  &c.,  ....  4 

secretary  and  treasurer  of  insurance  companies  to  give,  in  sum  required  by 

directors, g 

general  agent  and  attorney  of  companies  not  incorporated  in  this  State  to 
give,  in  sum  of  two  thousand  dollars,  with  condition  to  accept 

service,  &c., 55 

agents  of  fire,  marine,  and  fire-marine  companies  not  incorporated  in  this 
State,  to  give,  in  sum  of  two  thousand  dollars,  with  condition 

to  pay  taxes,  &c., 57 

agents  of  other  such  companies  to  give,  in  sum  of  one  thousand  dollars, 

with  condition  to  make  returns,  pay  taxes,  &c.,  ...  58 

BOTTOMRY,  money  lent  on,  may  be  insured  by  joint-stock  marine  companies,  28 

BROKERS,  INSURANCE,  what  constitutes, 56 

not  to  act  without  certificate  of  authority  from  Insurance  Commissioner,  . 56 

limit  of  authority  to  act, 57 

penalty  for  acting  without  authority, 57 

BURNING  building,  ship,  merchandise  or  other  property,  with  intent  to  injure 

or  defraud  insurer,  how  punished, 74 

BY-LAWS,  insurance  companies  may  adopt,  not  repugnant  to  their  charters 

or  laws  of  the  State, 7 

what  provisions  ma}”  be  made  in, 8 

penalties  may  be  annexed  to,  not  exceeding  twenty  dollars  for  one  offence,  8 

not  to  restrictor  designate  the  county  in  which  the  company  shall  be  sued,  8 

not  to  limit  the  right  to  sue  the  company  to  a period  of  less  than  two  years,  8 

not  to  be  considered  as  part  of  contract  or  policy  of  insurance,  unless  in- 
corporated in  body  of  policy  before  signatures,  ...  72 

may  provide  for  election  of  vice-president,  and  prescribe  his  duties,  . . 8 


240 


82 


INDEX. 


PAaz. 

CAPITAL  STOCK,  applications  for  acts  of  incorporation  to  specify  the  amount 

of  required, 5 

Joint-Stock  Companies  to  return  amount  of  annually  to  Tax  Commis- 
sioner,   13 

shares  of,  to  be  of  par  value  of  one  hundred  dollars  each,  ....  23 

to  be  paid  in  cash  within  one  year  from  date  of  charter,  ....  26 

Insurance  Commissioner  to  examine,  and  directors  to  make  oath  to  pay- 
ment of, 26 

how  to  be  invested, 9,  27 

tax  on  corporate  shares  or  franchise,  provisions  concerning,  . . . 13-17 

Stock  and  Mutual  (combined)  Companies,  if  in  Boston,  to  have  a 
guarantee  (capital  of  $100,000;  in  any  other  city  or  town,  of 

$50,000, 41 

how  to  be  paid  in  and  invested, 9,  26,  27,  41 

Mutual  Marine  and  Fire-Marine  Companies  to  have,  if  in  Boston,  a 

cash  or  stock-note  capital  or  safety-fund  of  $200,000,  . . 43 

in  any  other  city  or  town,  of  $100,000, 43 

Mutual  Life  Insurance  Companies  to  hav^e  a guarantee  capital  of 

$100,000, 48 

how  to  be  paid  in  and  invested, 9,  26,  27,  48 

when  and  how  to  be  redeemed, 49 

Joint-Stock  Companies  not  incorporated  in  this  State,  to  have  a 
capital  of  at  least  $100,000,  paid  in  cash  and  invested,  exclu- 
sive, &c., 53 

Joint-Stock  Fire  Companies,  capitals  of,  when  impaired  twenty-five 

per  cent.,  to  be  restored  to  original  amount  by  assessing  stock,  29,  63 
CERTIFICATE  OF  AUTHORITY  to  be  obtained  from  Commissioner  by 

joiot-stock  companies  before  issuing  policies,  ....  26 


to  be  procured  from  Commissioner  by  officers,  insurance  brokers,  agents  or 
sub-agents  of  companies  not  incorporated  in  this  Stf*'' 
acting  or  aiding  in  any  manner  the  business  thereof 
to  state  what 


may  be  revoked  by  the  Commissioner, 5» 

continuance  and  annual  renewal  of, 57,  58 

fee  to  be  paid  for, 57,  59 

penalty  for  acting  or  aiding  in  any  manner  without,  . . . ^ . 59 

CERTIFICATES  of  profits.  [See  Mutual  Marine  Companies.] 

of  valuation  of  life  policies, 66 

CERTIFIED  COPIES  of  papers  filed  in  Insurance  Department,  fees  for,  . 66 

CHARTERS.  [See  Acts  of  Incorporation.] 

granted  since  March  11,  1831,  subject  to  amendment,  alteration  or  repeal 

by  the  Legislature, 22 

notice  of  acceptance  of,  and  organization  under,  to  be  given  within  one 

year^from  date  of, 6 

to  become  extinct  by  omission  of  the  company  to  do  business  for  onei'ear,  19 
companies  whose  charters  have  expired  or  been  annulled,  to  continue 

bodies  corporate  for  certain  purposes, 20 

notice  to  be  given  of  petitions  to  the  Legislature  for  alteration  or  exten- 
sion of, 5 

to  specify  the  amendment  desired, 5 

proof  of  publication  of,  how  made, 5 

waiver  and  admission  of, 6 

petition  and  proof  of  notice,  when  to  be  presented  to  the  Legislature,  5 


241 


INDEX. 


83 


Page. 


CHARTERS — Continued. 

time  extended  twenty  days  in  case  of  unavoidable  accident,  &c.,  . 6 

copy  of,  to  be  filed  by  companies  not  incorporated  in  this  State,  on  apply- 
ing for  admission  to  do  business  here, 55 

fee  for  filing, 63 

CLERK,  Insurance  Commissioner  may  appoint, 1 

salary  of, 1 

Clerical  assistance  in  making  valuation  of  life  policies,  provision  for,  1 


“COMBINED  EXPERIENCE”  rate  of  mortality.  [See  “Actuaries’” 

RATE,  &C.] 

COMMISSIONER.  [See  Insurance  Commissioner,  and  Tax  Commis- 
sioner.] 


COMPENSATION  of  Insurance  Commissioner, 1 

of  his  clerk, 1 

for  actuarial  and  clerical  assistance  in  making  valuation,  provision  for,  . 1 

CONTENTS,  table  of, iv 

COPIES  of  papers,  fees  for  making  and  certifying, 66 

CREDITORS,  individual  liability  of  officers  of  companies  to,  in  certain  cases,  10, 

28,  39,  40,  45 

of  stockholders  to,  in  certain  cases, 10,  28 

of  agents  to,  in  certain  cases, 60 

policies  of  life  insurance,  when  to  inure  to  benefit  of  married  woman,  or 

that  of  her  children,  as  against, 50 

to  inure  to  any  person  for  whose  benefit  the  policy  was  procured,  as 

against, 51 

premiums  paid  with  intent  to  defraud  creditors,  to  inure  to  their  benefit,  . 51 


DEED  OF  SETTLEMENT.  [^See  Charters,  and  Fees.] 

DEFICIENCY.  [>8ee  Impairment  of  Capital,  and  Premium  Reserve.] 
DEPOSITS  OF  Moneys  or  Securities,  reciprocal  required  of  companies  of 


other  States, 62,  63 

Treasurer  of  Commonwealth  to  hold  in  certain  cases,  ....  9 

DIRECTORS,  to  make  sworn  statement  of  affairs  of  company  to  the  Legisla- 
ture or  Commissioner,  when  required, 9 

Commissioner  may  summon  and  examine  under  oath,  ....  2 

penalty  for  refusal  to  appear  and  testify, 2 

[See  Personal  Liability.] 

DISSOLUTION  of  Insurance  Companies,  provisions  concerning,  . . . 19-21 

may  be  dissolved  on  petition  of  members  to  supreme  judicial  court,  . . 19 

effect  of  such  dissolution, 19 

charters  of  to  become  extinct  by  omission  to  do  business  for  one  year,  . 19 

supreme  judicial  court  may  fix  time  within  which  to  wind  up  their 

concerns, 19 

companies  whose  charters  have  expired  or  been  annulled,  to  continue 

bodies  corporate  for  certain  purposes  for  three  years,  . . 20 

receivers  may  be  appointed  by  court, 20 

court  to  have  full  equity  jurisdiction  in  the  premises,  ....  20 

mutual  fire  companies,  when  to  close  their  concerns, 38 

DISTRIBUTION  of  Surplus.  {See  Surplus  ] 

DIVIDENDS,  list  of  unclaimed,  to  be  published  once  in  five  years,  . . 10 

premiums  received  on  risks  not  terminated,  not  to  be  divided,  . . .25,  26 

not  to  be  paid  to  a stockholder  whose  residence  is  unknown,  ...  24 


INDEX. 


Page. 


DIVIDENDS—  Continued. 

not  to  be  made  until  the  capital,  Avhen  reduced,  is  restored  to  its  original 


amount, 28 

the  insured  in  mutual  fire  companies  entitled  to  share  in  profits,  . . 33,  34 

hoTT  to  be  made  by  mutual  marine  companies, 45,  46 

stockholders  in  life  insurance  companies  entitled  to  what,  ....  48 

surplus  of  life  insurance  companies,'when  and  how  to  be  distributed  among 

the  assured, 49,  50 


EXAMINATION  of  companies,  their  oflicers  and  agents,  when  to  be  made  by 


Commissioner, 2,  3,  4,  8 

of  the  capital  of  joint-stock  companies, 26 

of  loan  fund  corporations, 4 

of  assessments  by* the  supreme  judicial  court, 35-38 

EXECUTORS,  Administrators,  Guardians  and  Trustees,  may  repre- 
sent shares  in  their  hands,  and  vote  as  stockholders,  . . 24 

not  personally  liable  as  stockholders,  but  estates  in  their  hands  are  liable, 

&c., 25 

EXPENDITURES  of  Insurance  Department,  to  be  reported  annually,  . . 4 

EXTENSION  of  Charter.  [See  Charters.] 

FEES,  for  examining  capital  of  joint-stock  companies, 26 

for  certificates  of  authority  to  insurance  brokers,  ....  57 

for  certificates  of  authority  to  agents,  &c., 59 

for  filing  copy  of  charter  or  deed  of  settlement, 63 

for  filing  statement  preliminary  to  admission, 63 

for  filing  annual  statements, 63 

for  valuation  of  life  insurance  policies, 66 

for  certificates  of  valuation, 66 

for  copies  of  papers  and  certifying  the  same,  .... 
reciprocal  imposed  on  companies  of  other  States  and  their  agents,  . 

FINES,  reciprocal  imposed  on  companies  of  other  States  and  their  agents, 

FIRE  INQUESTS,  provisions  concerning, 76,  77 

jury  may  be  summoned  on  complaint  and  certificate,  ....  76 

warrant  for,  how  served  and  returned,  and  panel  made  up,  . . 76 

oath  of  jurors,  form  of  and  how  administered, 76 

witnesses,  oath,  attendance  and  testimony  of, 77 

verdict  of  jury,  how  made  up  and  filed, 77 

fees  and  costs,  how  returned  and  paid, 77 


FIRE  INSURANCE  COMPANIES.  [See  Joint-Stock,  Stock  and  Mu- 
tual. Mutual  Fire,  and  Mutual  Fire-Marine,  Insurance 
Companies.  Impairment  of  Capital.  Taxes,  &c  ] 
FIRE-MARINE  INSURANCE  COMPANIES.  [See  Joint-Stock,  and  Mu- 
tual Fire-Marine  Insurance  Companies.  Taxes,  &c.] 
FOREIGN  INSURANCE  COMPANIES.  [See  Insurance  Companies  op 


OTHER  States  and  Foreign  Countries.] 

FORMS  prescribed  for  annual  statements, 60-70 

Commissioner  may  amend  and  revise,  and  propose  additional  inquiries,  . 71 

to  furnish  two  or  more  copies  of,  to  companies  and  agents,  . . 3 

FRANCHISE,  corporate,  of  joint-stock  companies,  provisions  concerning  tax 

on, 13-17 


243 


INDEX.  ^ 85 

Page. 

FRAUDS  ON  INSURERS,  provisions  for  prevention  of, 74,  75 

penalty  for  burning  building  or  personal  property  with  intent  to  defraud 

the  insurer, 74 

for  burning  or  destroying  ship  or  vessel  with  intent,  &c.,  ....  74 

for  lading,  equipping,  &c.,  ship  or  vessel,  with  intent,  &c.,  ...  74 

for  making  or  exhibiting  false  invoice,  bill  of  lading,  &c.,  with  intent,  &c.,  74 

for  making  or  procuring  false  protest  or  affidavit  with  intent,  &c.,  . . 75 

FRAUDULENT  insurance  companies,  proceedings  against,  . . .18,  19 

FUNDS  of  insurance  companies.  [See  Investments.] 


GENERAL  AGENT  AND  ATTORNEY  to  accept  service  of  process,  to 
be  appointed  by  companies  not  incorporated  in  this^State,  be- 
fore doing  business  here, 55,  56 

mode  and  terms  of  appointment  of,  &c., 55,  56 

appointment  of  to  be  continued  and  not  revoked,  until,  &c.,  ...  55 

effect  of  service  upon, 55 

to  give  bond  to  Treasurer  of  the  Commonwealth, 55 

to  deposit  with  Insurance  Commissioner  copy  of  charter,  and  statement  of 

condition  of  the  Company, 55 

to  file  annual  statements  of  standing,  business  and  affairs  of  the  Company,  60,  61 
GOVERNOR,  with  advice  of  Council,  to  appoint  Insurance  Commissioner,  . 1 

may  remove  the  Commissioner, 1 

and  Council  may  allow  compensation  for  service  and  expenses  in  en- 
forcing laws  relating  to  insurance  companies,  ....  73 

GUARDIANS.  [See  Executors,  &c.] 


IMPAIRMENT  op  capital,  when  amounting  to  twenty-five  per  cent.,  capitals 
of  fire  companies  to  be  restored  to  original  amount  by  assess- 
ing the  stock, 29,  63 

if  ssessment  is  not  paid,  shares  may  be  cancelled,  . g . . . 29 

if  not  so  repaired,  within  three  months  after  notice  from  the  Commissioner 
to  his  satisfaction,  he  shall  apply  for  an  injunction  against  the 

company, 29 

fire  insurance  companies  not  incorporated  in  this  State,  to  repair  their 

capitals  as  aforesaid,  or  not  to  be  allowed  to  do  business  here,  63 
INDIVIDUAL  LIABILITY.  [See  Personal  Liability.] 

INJUNCTIONS,  in  what  cases  may  be  issued  by  Supreme  Judicial  Court 

against  insurance  companies,  their  officers  and  agents,  17,  18,  19,  20, 


21,  66 

INQUESTS  IN  CASES  of  fire.  [See  Fire  Inquests.] 

INSOLVENT  insurance  companies,  proceedings  against,  . . . . 18,  19 

when  mutual  fire  companies  are  in  danger  of  becoming,  the  directors  may 

lay  assessments, 35 

INSURANCE,  limited  partnerships  not  to  be  formed  for,  ....  11 

conditions  of,  to  be  stated  in  body  of  policy,  before  signatures,  ...  72 

contracts  of,  to  be  valid  though  compau}’-  has  not  complied  with  laws,  . 60 

policies  or  contracts  of,  to  be  headed  'Cvith  corporate  name  or  title  of  the 

company  only, 72 

INSURANCE  BROKERS,  what  constitutes, 56 

not  to  act  without  certificate  of  authority  from  Insurance  Commissioner,  . 56  . 

limit  of  authority  to  act, 57 

penalty  for  acting  without  authority, 57 


INDEX. 


this  State, 


to  exhibit 


INSURANCE  COMMISSIONER,  appointment  and  term  of  ofifice  of, 
salary,  and  compensation  for  actuarial  services  of, 

to  give  bond, 

may  appoint  a clerk, 

to  make  an  annual  valuation  of  all  policies  of  life  insurance, 
may  employ  actuarial  and  clerical  assistance  in  making, 
to  visit  and  examine  any  insurance  company  incorporated  in 

upon  request,  &c., 

to  have  free  access  to  its  books  and  papers,  &c.,  . 
may  require  agents  of  companies  not  incorporated  in  this  State, 
their  books  and  answer  interrogatories, 
penalty  for  refusal  or  neglect  to  answer, 
may  summon  and  examine  directors,  officers  and  agents  of  any 
company  and  other  persons, 
penalty  for  refusing  to  appear  and  testify,  . 
directors  to  furnish  sworn  statement  of  affairs  of  company  to,  when  re- 
quired,   

to  report  violations  of  law  by  companies,  their  officers  or  agents,  through 
Secretary  of  Commonwealth  to  the  Attorney-General, 
to  apply  to  the  Supreme  Judicial  Court  for  injunction  against  insolvent 

and  unsound  companies, 

and  against  joint-stock  fire  companies  which  do  not  repair  their  capi- 
tals when  reduced,  &c., 

may  apply  for,  if  -a  company  exceeds  its  powers,  or  fails  to  comply  with 

requirements  of  law, 

may  apply  to  the  Court  to  wind  up  a company  which  has  ceased  to  do 

business  for  one  year, 

and  to  examine  assessments  made  by  mutual  fire  companies,  or  to 

order  such  to  be  made, 

and  to  prohib^jt,  or  stay  the  further  collection  of  assessments, 
to  examine  accounts  rendered  by  receivers  of  insurance  companie''  t 

port  thereon  to  the  Court, 

to  certify  to  the  Court  when  further  efforts  of,  to  collect  an  assessment 

will  not  avail  creditors, 

to  notify  life  insurance  companies  and  their  agents,  to  cease  issuing  poli- 
cies while  premium  reserve  is  impaired, 

to  examine  the  capital  of  joint-stock  companies,  and  grant  certificate  of 

authority  before  policies  issue, 

to  approve  subscriptions  to  safety  fund  of  mutual  marine  and  fire-marine 

companies, 

to  be  satisfied  that  companies  of  other  States  and  foreign  countries  have 
requisite  funds,  &c.,  before  admission  to  do  business  in  this 

State, 

to  grant  certificates  of  authority  to  the  officers,  agents  and  sub-agents  of 
such  companies,  and  revoke  or  renew  the  same, 
to  furnish  blank  forms  for  returns,  to  insurance  companies  and  agents, 
may  amend  and  revise  the  forms  of  annual  statement  prescribed,  and  pro- 
pose additional  inquiries, 

may  extend  the  time  prescribed  for  filing  such  statements,  for  cause  shown, 

but  within  certain  limits, 

may  withhold  the  annual  statements  of  life  insurance  companies  until  his 
annual  report  is  published, 


Page. 

1 

1 

4 

1 

3 

1 

2 

2 

2 

2 


18 


29 


19 


19 


21 


71 


26 


44 


54 

57,  58 
3 

71 

71 

71 


245 


INDEX. 


87 


Page. 

INSUEANCE  COMMISSIONER—  Continued. 

to  collect  and  pay  into  the  treasury  fees  for  copies,  &c.,  ....  66 

to  keep  a record  of  his  proceedings, . 3 

to  make  an  annual  Report  to  the  Legislature.  [See  Annual  Report.] 
powers  and  duties  of,  regarding  Loan  and  Fund  Associations,  ...  4 

obstructing  the  Commissioner  in  discharge  of  his  duty,  penalty  for,  . 2 

INSURANCE  COMPANIES,  violations  of  law  by,  to  be  reported  by  Com- 
missioner and  prosecuted  by  Attorney-General,  ...  3 

to  conduct  business  in  proper  and  corporate  name  only,  ....  72 

not  to  deal  or  trade  in  goods,  merchandise,  &c.,  except  insured  property 

on  which  losses  are  claimed, 72 

Governor  and  Council  may  allow  compensation  for  services  and  expenses 

in  enforcing  laws  relating  to, 73 

to  make  and  file  annual  statements  of  their  standing,  condition  and 
affairs.  [See  Annual  Statements.] 
to  pay  certain  taxes  and  fees.  [See  Taxes  and  Fees.] 
prevention  of  frauds  on.  [See  Frauds  on  Insurers.] 

Incorporated  in  this  State,  general  provisions  concerning,  . . 5-22 

powers,  duties  and  liabilities  of, 6 

to  give  notice  of  their  acceptance  of  charter  and  organization,  within  one 

year, 6 

first  meeting  of,  how  called  and  notified, 6 

call  for  all  meetings  of,  to  specify  proposed  business, 7 

meetings  of,  how  called  in  case  of  death  or  disability  of  officers,  . . 7 

what  business  may  be  transacted  at  such  meetings,  ....  7 

maj’’  sue  and  be  sued,  prosecute  and  defend,  &c., 7 

may  have  a common  seal,  and  alter  the  same, 7 

may  elect  officers,  fix  their  compensation,  define  their  duties,  &c.,  . . 7 

may  adopt  by-laws,  not  repugnant  to  their  charters  or  laws  of  the  State. 

[See  By-Laws,] 7,  8 

•'  If’  * ' md  treasurer  of,  to  give  bond, 8 

' <-e  of,  to  furnish  sworn  statement  of  their  affairs  to  Legislature  or 

Insurance  Commissioner,  when  required, 8 

funds  of,  how  to  be  invested.  [See  Investments.] 

mortgages  held  by  may  be  attached  and  sold  on  execution,  . . 9 

Treasurer  of  the  Commonwealth  may  hold  securities  of,  to  enable  them  to 

comply  with  laws  of  other  States, 9 

may  convey  lands  to  which  they  have  a legal  title, 9 

to  have  their  office  in  the  city  or  town  specified  in  their  charters,  . . 9 

cards,  advertisements,  &c.,  of,  to  specify  the  location  of,  as  fixed  by  their 

charters, 9,  10 

not  to  issue  policies  extending  beyond  the  term  of  their  original  or  re- 
newed charter,  under  penalty,  &c., 10 

personal  liability  of  officers,  stockholders  and  members  of,  may  be  enforced 

in  equity, 10 

to  publish  a list  of  unclaimed  dividends  and  balances,  ....  10 

to  be  liable  to  be  taxed  by  any  general  law  taxing  insurance  companies,  . 11 

to  be  visited  and  examined  by  the  Commissioner,  on  request,  &c.,  . . 2 

when  insolvent,  or  proceeding  in  fraud  of  law,  injunction  may  be  issued 

against,  and  receivers  appointed, 18 

when  and  how  may  be  dissolved,  and  charters  become  extinct,  . . 19-21 

to  continue  bodies  corporate  in  such  cases,  for  certain  purposes,  . . 20 


12 


INDEX. 


INSURANCE  COMPANIES— 


Page. 


Of  Foreign  Countries,  laws  relating  to,  to  include  all  companies,  asso- 
ciations and  individuals  engaged  in  insurance,  whether  incor- 
porated or  not, 64 

Of  other  States,  to  be  subject  to  the  same  taxes,  penalties,  obligations, 
prohibitions,  &c.,  as  are  imposed  on  companies  of  this  State, 
by  the  laws  of  their  own  States  respectively,  ....  62,  63 
Of  other  States  and  Foreign  Countries,  provisions  concerning,  . 53-64 
conditions  of  admission  of,  to  do  business  in  this  State,  ....  53,  54 
joint-stock  companies,  to  have  a capital  of  at  least  $100,000,  paid  in  cash 

and  invested,  exclusive,  &c., 53 

Of  other  States,  to  be  restricted  from  taking  single  risks  exceeding 

one-tenth  part  of  unimpaired  capital, 53 

Of  Foreign  Countries,  to  ten  per  cent,  of  value  of  securities  deposited, 

See., 53 

nor  to  re-insure  in  companies  not  authorized  to  do  business  in  the  State,  . 54 

to  comply  with  all  the  laws  of  this  State, 53,  54 

mutual  companies,  to  have  $100,000  in  cash  or  cash  funds  securely  in- 
vested, and  $100,000  in  deposit  notes, 54 

whether  stock  or  mutual,  to  satisfy  the  Insurance  Commissioner  that  they 
have  the  requisite  funds,  and  have  complied  with  all  require- 
ments of  law, 54 

to  appoint  a General  Agent  and  Attorney  to  accept  service  of  process,  . 55,  56 

not  to  recover  premiums  or  assessments  without  such  appointment,  . 56 

officers,  agents  and  sub-agents  of,  to  procure  certificates  of  authority  to 

act,  from  the  Insurance  Commissioner, 58 

to  specify  in  policies,  cards,  advertisements,  &c.,  the  location  and  kind  of 

company, 59 

contracts  of  insurance  by,  to  be  valid,  though  company  does  not  comply 

with  the  requirements  of  law, 60 

to  be  liable  to  be  sued,  and  property  attached, 64 

fire  insurance  companies,  capitals  of,  when  impaired  twentj'-five  percent., 
to  be  repaired  by  assessing  the  stock,  or  company  not  to  do 

business, 63 

INSURERS.  [See  Frauds,] 

INVESTIGATION  into  the  origin  of  fires.  [See  Fire  Inquests.] 
INVESTMENTS,  to  be  made  in  the  corporate  name  of  the  company,  . . 9 

of  companies  classifying  their  risks,  to  be  made  separately,  ...  9 

investing  officers  of  mutual  companies,  not  to  borrow  funds,  or  to  be  sure- 
ty for  loans  to  others, 9 

of  the  capital  of  joint-stock  companies,  how  to  be  made,  . . . . 26,  27 

of  stock  and  mutual  (combined)  companies, 41 

of  life  insurance  companies, 48 

of  the  safety-fund  and  profits  of  mutual  marine  and  fire-marine  companies,  45 

originally  legally  made,  need  not  be  changed, 27 

directors  personally  liable  for  loss  by  unauthorized  investment  or  loan,  . 27 

mortgages  may  be  attached  and  sold  on  execution  by  creditors,  . . 9 

INVOICE,  false.  \See  Frauds.] 


JOINT-STOCK  INSURANCE  COMPANIES  incorporated  in  this 


State,  provisions  concerning, 23-29 

Directors,  choice  and  term  of  office  of, 23 


247 


INDEX.  89 

Page. 

JOINT-STOCK  INSURANCE  COMPANIES,  Directors— 

to  accept  in  writing, 23 

quorum  and  meetings  of, 23 

to  choose  president,  secretary,  &c.,  and  may  fill  vacancies,  . . 23 

personally  liable  for  loss  arising  from  unauthorized  investments,  . 27 

for  loss  on  risk  exceeding  one-tenth  of  existing  capital,  ...  28 

for  loss  on  policies  issued  while  losses  are  equal  to  capital,  . . 28 

may,  and  in  certain  cases  shall,  call  special  meetings  of  the  stock- 
holders,   25 

at  annual  meeting  to  furnish  statement  of  condition  of  company  to,  . 25 

how  much  to  charge  the  company  therein  as  reserve  for  re-insurance,  26 
not  to  divide  to  the  stockholders  premiums  received  on  risks  not  ter- 
minated,   26 

President,  to  be  chosen  by  and  from  directors,  and  sworn,  ...  23 

to  preside  at  all  meetings,  and  in  his  absence  a president  pro  tempore 

to  be  chosen, 23 

to  sign  policies, 28 

Vice-Presdent,  election  and  duties  of, 8 

to  be  sworn,  may  sign  policies,  &c., 8,  28 

Secretary,  to  be  chosen  by  directors,  and  sworn,  . . . . . 23 

to  keep  record  of  votes,  transfers,  policies,  assignments,  &c.,  . . 24 

to  be  a resident  within  the  State,  and,  by  removal,  to  vacate  his  office,  24 
to  exhibit  list  of  stockholders,  and  record  of  transfers  of  stock,  in  cer- 
tain cases,  under  penalty,  &c., 24,  25 

to  sign  policies, 28 

vacancies  in  any  office,  how  filled, 23 

Stockholders,  special  meetings  of,  when  to  be  called,  ....  25 

liable  for  unpaid  instalments  of  shares  when  capital  is  reduced  by 

losses, 28 

name  and  residence  to  be  registered,  &c. 24 

ates  and  dividends  not  to  be  issued  or  paid  to  while  residence 

•s  unknown, 24 

, ...  be  open  to  inspection,  under  penalty,  &c.,  ....  24 

Capital  Stock,  when  and  how  to  be  paid  in, 26 

Commissioner  to  examine  capital, '26 

directors  to  make  oath  to  payment  of,  &c., 26 

how  to  be  invested.  [See  Investments.] 

when  to  be  repaired  by  stockholders.  [See  Impairment  of  Capital.] 

Shares,  par  value  of,  to  be  one  hundred  dollars  each,  ....  23 

certificates  of,  when  and  how  to  be  issued, 26 

each  entitled  to  one  vote, 23 

executors,  &c.,  to  represent  shares  and  vote  but  not  personally  lia- 
ble, &c., 24,  25 

record  of  transfers  of,  to  be  kept  in  this  State,  and  exhibited  in  cer- 
tain cases, 24,  25 

in  transfer  of  as  collateral,  debt  to  be  described,  &c.,  ....  25 

tax  on  corporate  shares  or  franchise,  provisions  concerning,  . . 13-17 

Votes,  no  stockholder,  in  person  or  as  proxy,  to  cast  more  than  thirty,  . 23 

record  of  by  secretary,  to  be  evidence  of  elections,  . . . . 24 

Proxies  may  be  authorized  in  writing,  but  officers  not  to  vote  as,  . . 23 

Policies,  not  to  issue  until  capital  is  paid  in  and  certificate  of  Commis- 
sioner obtained , 26 

how  to  be  signed.  {See  Policies,] 28 


INDEX. 


Page. 

JOINT-STOCK  INSURANCE  COMPANIES -Con^mMerf. 

Risks,  -what  may  be  insured  by  such  companies, 28 

not  to  exceed  one-tenth  part  of  unimpaired  capital,  ....  28 

none  to  be  taken  when  losses  are  equal  to  capital,  ....  28 

JOINT-STOCK  INSURANCE  COMPANIES  of  other  States  and  For- 
eign Countries,  conditions  of  admission  of,  to  do  business  in 
this  State, 53,  54 

LEGISLATURE.  [See  Acts  of  Incorporation  and  Charters.] 

Insurance  Commissioner  to  make  annual  reports  to,  . . . *3,  4,  21 

directors  to  make  sworn  statements  to,  or  to  a committee  of,  . . . 8 

LIABILITIES,  terra  to  include  a sura  sufficient  to  re-insure  all  outstanding 

risks, 26,  29,  33,  35 

what  to  include,  and  how  ascertained,  in  life  insurance  companies,  . . 71,  72 

[See  Personal  Liability.] 

LIEN,  mutual  fire  insurance  companies  to  have,  in  certain  cases,  ...  32 

how  enforced, 32 

now  abolished  (note), 32 

LIFE  INSURANCE  COMPANIES,  mutual,  to  have  a guarantee  capital  of 

$100,000, 48 

how  to  be  paid  in  and  invested, 9?  26,  27,  48 

investing  officers  not  to  borrow  or  be  surety  for  loans,  ...  9 

when  and  how  to  be  redeemed, 49 

annual  meetings,  how  notified, 48 

Directors,  first  and  subsequent  boards  of,  how  chosen,  ....  48 

Stockholders  entitled  to  dividends  not  exceeding  eight  per  cent,  per 

annum, 48 

Surplus  funds  may  be  divided  among  the  assured  annually,  or  once  in 

two,  three,  four  or  five  years, 49,  50 

on  what  basis  distribution  of  may  be  made, 49,  50 

may  be  distributed  on  the  basis  of  contribution  to  surplus,  . . 49 

policies  becoming  payable  before  such  distribution,  to  «hare  in  the 

same  equitably, 50 

amount  ot  premium  reserve  required  in  ascertaining  divisible  surplus,  49 

Valuation  of  policies  of,  to  be  made  annually  by  the  Commissioner,  . 3 

to  pay  as  compensation  for  such  valuation,  one  cent  on  each  $1,000 

insured  on  lives, 66 

Married  Woman,  policy  effected  for  benefit  of,  to  inure  to  her  sole  use 

and  benefit,  &c., 50 

trustee  may  be  appointed  to  hold  her  interest  in  such  policy,  . . 50 

policy  assigned  or  transferred  for  benefit  of,  to  inure  in  like  manner,  . 50 

policy  effected  by  one  person  for  benefit  of  another,  to  inure  to  latter,  as 

against  creditors,  &c., 50,  51 

if  premium  is  paid  with  intent  to  defraud  creditors,  an  equal  amount  to 

inure  to  their  benefit, 51 

policies  issued  on  or  after  May  10,  1861,  not  to  become  void  by  non-pay- 
ment of  premium,  but  to  continue  in  force  for  a certain  period,  51 

term  of  extended  policjq  how  ascertained, 51 

policy  to  be  paid,  if  death  occur  within  such  period,  if,  &c.,  . . 51 

notice  and  proof  of  death  to  be  made  within  ninety  da3's,  ...  52 

company  may  deduct  amount  of  premiums  forborne  with  interest,  . 52 

no  corporation,  association,  etc.,  to  insure  or  contract,  &c.,  except  in  ac- 
cordance with  insurance  laws  of  the  State,  ....  52 


INDEX. 


Page. 

LIFE  INSURANCE  COMPANIES— ConiiwMetf. 

not  to  issue  new  policies  while  the  premium  reserve  is  impaired,  according 

to  a prescribed  standard  of  valuation, 71,  72 

Commissioner  to  notify  companj’^  and  its  agents  in  such  cases,  . . 72 

officers  and  agents  issuing  new  policies  after  such  notice,  how  pun- 
ished,   72 

not  to  issue  policies  insuring  fire  or  marine  risks, 52 

to  be  subject  to  the  same  obligations,  &c.,  as  the  Mass.  Hos.  Life  Ins.  Co.,  52 

agents  of,  who  to  be  deemed  such, 65 

annual  statements  of,  may  be  withheld  from  publication  until  report  of 

Commissioner  is  published, 71 

LIMITATION  OF  actions  against  companies,  not  to  be  for  less  than  two 

3^ears, 7,  8 

Of  eisks,  in  joint-stock  companies,  provisions  concerning,  ...  28 

in  mutual  fire  companies, 33,  34 

in  stock  and  mutual  (combined)  companies, 41,  42 

in  mutual  marine  and  fire-marine  companies, 45 

in  joint-stock  companies  of  other  States  and  foreign  countries,  . . 53,  54 

LIMITED  PARTNERSHIPS,  not  to  be  formed  for  business  of  insurance,  . 11 

LOAN  AND  FUND  CORPORATIONS,  powers  and  duties  of  Insurance 

Commissioner  in  relation  to, 3,  4 

Commissioner  to  visit  and  examine  upon  request,  &c.,  ....  4 

to  have  free  access  to  books  and  papers  of, 4 

to  report  condition  of,  to  Legislature  annually, 4 

to  report  violations  of  law  by,  to  the  Attorney-General,  ....  4 

LOANS.  [See  Investments.] 


MARINE  INSURANCE  COMPANIES.  [See  Joint-Stock,  Mutual  Fire- 
Marine,  and  Mutual  Marine  Insurance  Companies, 
Taxes,  &c.] 

. ■ A'^OMAN,  policies  of  life  insurance  in  certain  cases  to  inure  to 

her  sole  use  and  benefit,  and  that  of  her  children,  ...  50 

iu^oDAt,.rLaSETTS  HOSPITAL  LIFE  INSURANCE  COMPANY  to  pay 

tax  to  the  Treasurer  of  the  Commonwealth,  ....  12 

to  make  semi-annual  returns  to, 13 

penalty  for  neglect  to  make  return,  or  making  false  return,  . . 13 

tax,  when  and  how  to  be  paid  by, 13 

not  paj'ing,  liable  to  suit  and  injunction, 65,  66 

other  life  insurance  companies  subject  to  certain  obligations  the  same  as,  . 52 

MEMBERS,  who  are  of  mutual  companies, 30,  35,  44 

how  notified  of  annual  meetings, 30,  48 

not  to  be  allowed  more  than  five  votes  each  in  person,  . . .30,  44 

entitled  to  share  in  profits, 33,  46 

liable  to  pay  assessments, 33 

personal  liability  of,  for  debts,  &c.,  may  be  enforced  in  equity,  . . 10 

company  may  be  dissolved  on  petition  of, 19 

MORTGAGES  of  Rp:al  Estate  held  by  companies,  liable  to  attachment  and 

sale  on  execution, 9 

investment  of  capital  and  funds  may  be  made  in, 26,  27 

MUTUAL  FIRE  INSURANCE  COMPANIES,  provisions  concerning,  . 30-40 

Directors,  election  and  term  of  office  of, 31 

to  choose  president,  secretary  and  treasurer,  &c.,  ....  31 

quorum,  powers  and  duties  of, 31 


INDEX. 


MUTUAL  FIRE  INSURANCE  COMPANIES— 

President,  to  be  chosen  by  and  from  directors,  and  sworn, 
Vice-President,  election,  powers  and  duties  of,  . 

Secretary  and  Treasurer,  to  be  chosen  by  directors  and  sworn. 
Secretary,  to  keep  record  of  all  meetings,  votes,  policies,  &c., 

vacancies  in  any  office,  how  filled, 

investing  officers  of,  not  to  borrow  funds,  or  be  surety  for  loans  to  others, 

Members,  all  persons  insured  to  be, 

to  be  notified  of  annual  meetings, 

other  corporations  becoming  members,  how  represented,  &c., 
trustees  may  become  members,  &c.,  but  not  individually  liable, 
all  entitled  to  share  in  profits,  and  liable  to  pay  assessments,  &c.. 

Votes.  AND  Proxies,  provisions  regulating, 

Special  Meetings,  when  may  and  shall  be  called,  .... 
Policies  not  to  issue  until  $250,000  has  been  [subscribed  to  be  insured 

&c., 

may  cover  property  situated  where, 

not  to  cover  over  three-fourths  of  value  of  property  insured.  [See 

Policies,] 

single  risks  not  to  be  taken  for  excessive  amount  or  with  intention  of 

re-insuring, 

policies  not  to  be  issued  on  other  than  mutual  plan,  unless  the  compa 
ny  is  chartered  as  a stock  and  mutual  company, 

Lien,  policies  issued  prior  to  April  30,  1862,  to  create,  &c., 

proceedings  to  enforce, 

now  abolished  (note), 

Classification  of  Risks,  provisions  concerning,  .... 
classes  not  to  exceed  four,  and  policies  to  specify  the  class, 
policy  not  to  issue  in  separate  class  until  $500,000  is  insured  therein 
assessments,  expenses,  dividends,  &c.,  how  made  and  apportioned, 

invelstments  of  funds  how  made, 

annual  statements  to  specify  respective  amounts  in  each  class,  . 

Assessments,  provisions  concerning, 

when  and  how  made  by  directors, 

vote  of  directors,  making,  to  be  recorded, 

statement  of  condition  of  company  to  be  made,  recorded  and  signed 
to  contain  what,  and  when  separate  statements  to  be  made,  . 
any  person  liable  to  assessment  may  inspect  and  copy  statement, 
assessment  not  to  be  collected  until  record  and  statement  are  made, 
directors  may,  in  certain  cases,  make  two  assessments, — one  compulsory 
the  other  optional, — provisions  concerning, 
unless  latter  is  paid,  policy  to  be  cancelled,  .... 
supreme  judicial  court  may,  on  petition,  examine,  ratify,  amend  or 
annul  such  assessments,  or  order  the  same  to  be  made, 
who  may  make  such  application  to  the  court,  .... 

directors  to  set  forth  claims,  &c., 

notice  of  application  to  be  given,  and  proceedings  on  return  thereof 
auditor  to  be  appointed,  to  notify  and  hear  all  parties,  and  report, 

court  may  appoint  a competent  computer, 

and  make  such  order  as  equity  requires, 

if  assessment  is  amended,  directors  to  vote  the  same  in  legal  form, 
final  decree  to  be  entered  by  court,  and  to  be  conclusive  on  all  parties 
liable  to  the  assessment,  &c., 


Page. 

-31 

8 

31 

31 

31 

9 

30 
30,  48 

31 
33 
33 

30 

31 

31 

32 

32 


41 

32 

32 

32 
33,  34 

33 


34 


34 
. 35 
9 

69 
34-40 
34,  35 
34 

34 

34,  35 

35 
35 

35 

35 

35,  36 

36 
36 
36 

36 

37 
37 
37 


37 


INDEX. 


Page. 

.MUTUAL  FIRE  INSURANCE  COMPANIES— Conimwet?. 

an  amended  assessment  to  be  as  binding  as  original  would  have  been,  37 

court  may  control  disposition  of  proceeds  of  assessment,  ...  37 

may  decree  that  no  assessment  be  collected,  or  stay  further  collec- 
tion of, • . 37,  38 

proceedings  to  be  at  cost  of  the  company,  unless,  &c.,  ...  37 

company  to  cease  issuing  policies,  and  close  its  concerns,  unless  both 
assessments  are  paid  on  policies  insuring  at  least  $250,000, 

&c.,  within  two  months,  &c., 38 

no  assessment  to  be  laid  on  any  person  whose  policy  has  been  cancelled 

or  expired  for  two  years, 38 

nor  to  be  valid  unless  written  notice  is  given  thereof  within  said 

period, 38 

supreme  judicial  court  may  stay  the  further  collection  of  any  assessment,  21,  38 
no  officer  or  director  to  give  a guaranty  against  assessment,  under  penal- 
ty, &c., 39 

directors  neglecting  to  pay  an  execution  against  the  company,  or  to  assess 

therefor,’  to  be  personally  liable  for  its  amount,  ...  39 

remedy  of  creditor  in  such  cases  against  directors,  . . . . 39,  40 

of  directors  paying,  for  contribution,  &c., 39,  40 

treasurer  neglecting  to  collect  or  apply  assessment,  to  be  personally  liable,  40 
{See  Stock  and  Mutual  (combined)  Insurance  Companies.] 

MUTUAL  FIRE-MARINE  INSURANCE  COMPANIES.  {See  Mutual- 
Marine  AND  Mutual  Fire-Marine  Insurance  Compa- 
nies.] 

MUTUAL  INSURANCE  COMPANIES  of  other  States  and  Foreign 
Countries,  conditions  of  admission  of,  to  do  business  in  this 


State, 53,  54 

MUTUAL  LIFE  INSURANCE  COMPANIES.  [See  Life  Insurance  Com- 
panies.] 

- VL  MARINE  INSURANCE  COMPANIES,  to  make  an  annual  div- 
idend statement,  showing  net  profits  of  business,  ...  45 

irectors  may  divide  net  profits  at  a uniform  percentage  on  expired  premi- 
ums and  subscriptions  to  safety  fund, 45 

may  issue  certificates  or  scrip  representing  such  dividend,  ...  46 

scrip,  how  transferable, 46 

need  not  be  issued  for  sum  less  than  ten  dollars, 46 

subject  to  future  losses  and  expenses,  and  to  be  reduced,  and  certifi- 
cates so  to  express, 46,  47 

interest  may  be  paid  on  at  rate  of  six  per  cent,  per  annum,  ...  46 

when  and  how  to  be  redeemed, 46 

limit  of  accumulation  before  scrip  becomes  redeemable,  ....  46 

scrip  may  be  withheld  if  person  entitled  owes  the  company  for  a debt  past 

due, 47 

liability  of  policy-holders  and  scrip-holders  defined, 47 

MUTUAL  MARINE,  AND  MUTUAL  FIRE-MARINE  INSURANCE  COM- 
PANIES, to  be  subject  to  certain  provisions  relating  to  mutual 

fire  insurance  companies, 43 

Directors,  election,  term  of  office,  powers  and  duties  of,  . . 30,  31,  43 

President,  election  and  oath  of  office, 31,  43 

Vice-President,  election,  powers  and  duties  of, 8 

Secretary  and  Treasurer,  election,  oath  and  duties  of,  . . . 31,  43 


252 


94 


INDEX. 


Page. 

MUT.  MARINE  AND  MUT.  FIRE-MARINE  INSURANCE  Continued. 

members,  votes,  and  proxes,  provisions  concerning, 30,  43 

special  meetings  and  vacancies  in  office,  provisions  concerning,  . . 31,  43 

before  commencing  business  to  have  an  agreement  or  subscription,  form  of,  43 

policies  not  to  be  issued  until,  &c., 43 

if  in  Boston,  $200,000  to  be  subscribed  and  paid,  (See.,  ...  43 

elsewhere,  $100,000  to  be  subscribed  and  paid,  &c.,  ....  43 

one-half  the  subscribed  capital  required  by  law  to  be  paid  in,  in  cash,  43 

president  and  directors  to  certify  solvency  of  subscribers,  &c.,  ...  43 

liability  of,  for  false  certificate, 44 

copy  of  certificate  to  be  filed  with  and  approved  by  the  Commissioner,  44 

subsequent  subscriptions  to  be  made,  certified  and  filed  in  like  manner,  . 44 

subscriptions  to  constitute  a permanent  safety-fund, 44 

how  to  be  held  and  used, 44 

subscription  notes  to  be  paid,  or  others  substituted, 44 

when  may  be  cancelled, 44 

cash  payments  of  subscribers  and  surplus  funds,  how  invested,  . . 27,  44 

investing  officers  not  to  borrow  or  be  surety  for  loans,  ....  9 

risks  not  to  exceed  ten  per  cent,  of  net  assets, 45 

excess  to  be  re-insured, 45 

president  and  directors  personally  liable  on  policies  issued  when  company 

is  insolvent, 45 

directors  to  require  of  president  a monthly  statement,  which  shall  be  re- 
corded,   45 

[/See  Mutual  Maeink  Insurance  Companies.] 

NON-FORFEITURE  of  policies  of  life  insurance  issued  by  companies  incorpo- 
rated in  this  State,  provisions  concerning,  . . . . 50,  51 

NOTES  of  stock-holders,  not  to  be  considered  part  of  capital  unless  secured, 

&c., 41,  53 

subscription,  in  mutual  marine  and  fire-marine  companies,  provisions  con- 
cerning,   43-47 

OBLIGATIONS,  reciprocal,  imposed  on  companies  of  other  States  and  their 

agents, 62,  63 

OFFICERS  of  insurance  companies.  Commissioner  may  summon  and  exam- 
ine under  oath, 2 

penalty  for  refusal  to  appear  and  testify, 2 

violations  of  law  by,  to  be  reported  by  Commissioner  and  prosecuted  by 

Attorney-General, 3 

in  case  of  death  or  disability  of,  meetings  how  called,  and  vacancies  filled,  7 
corapaniesmay  elect  necessary,  define  their  duties,  compensation,  &c.,  . 7,  8 

personal  liabilities  of,  may  be  enforced  in  equity.  [See  Personal  Lia- 
bility,]   10 

Of  Companies  not  incorporated  in  this  State,  to  procure  certifi- 
cates of  authority  in  certain  cases, 58 


PARTNERSHIPS,  limited,  not  to  be  formed  for  the  purpose  of  insurance,  . 11 

PENALTIES,  reciprocal  imposed  on  companies  of  other  States  and  their 

agents, 62-63 

may  be  annexed  to  by-laws  of  companies, 8 

for  frauds  on  insurers, 74,  75 

PENALTY  on  agent,  for  refusing  to  answer  interrogatories,  ...  2 


253 


■fr 


y •• 


INDEX.  95 

Page. 

PEN  ALTIES— 

on  officers  and  agents,  for  refusing  to  appear  and  testify,  ...  2 

for  issuing  policy  extending  beyond  term  of  charter,  or  assenting 

thereto, 10 

for  issuing  life  policies  while  premium  reserve  is  impaired,  . . 71 

on  officers,  for  giving  guaranty  against  assessment,  ....  39 

on  brokers  and  agents,  for  acting  without  giving  bond,  procuring 

certificate,  &c., 57-60 

for  not  making  returns  to  Treasurer  of  Commonwealth,  ...  59 

for  making  insurance  in  violation  of  any  law,  ....  65 

on  company,  for  neglect  to  make  tax  returns,  or  for  false  returns,  . 13,  16 

for  neglect  to  make  annual  statement,  or  for  false  statement,  . . 71 

for  obstructing  Commissioner  in  discharge  of  his  duty,  ....  2 

PERSONAL  LIABILITY  of  officers,  stockholders  or  members  may  be  enforced 

in  equity, 10,  39 

of  president  or  directors,  for  unauthorized  investment  or  loan,  ...  27 

for  taking  excessive  risks,  or  making  insurance  while  company  is  in- 
solvent,   28,  45 

for  neglect  to  make  assessment  when  unable  to  pay  losses,  &c.,  . 39 

for  neglect  to  satisfy  execution,  or  make  assessment  therefor,  . . 39 

for  false  certificate  of  solvency,  &c., 44 

of  treasurer,  for  neglect  to  collect  or  apply  assessment,  ....  40 

of  agent,  on  policies  issued  in  violation  of  law, 60 

for  taxes  not  paid  by  company  for  which  he  acts,  ....  60 

POLICIES,  not  to  restrict  or  designate  the  county  in  which  the  company  shall 

be  sued, 8 

not  to  limit  right  to  sue  the  company  to  a less  period  than  two  years,  . 8 

to  be  signed  by  president  or  two  directors,  and  secretary,  ...  28 

may  be  signed  by  vice-president, 8,  28 

not  to  be  issued  extending  beyond  the  term  of  original  or  renewed  charter,  10 

to  be  headed  or  entitled  only  by  corporate  name  or  title  of  company,  . 72 

conditions  of  insurance  to  be  stated  in  body  of  policy,  before  signatures,  . 72 

application  of  the  insured,  and  by-laws  of  company,  not  to  form  part  of, 

unless  written  in  body  of  policy, 72 

not  to  be  issued  for  term  exceeding  seven  years,  except  by  life  insurance 

companies, 72 

of  companies  not  incorporated  in  this  State,  to  specify  the  location  and 

kind  of  company, 59 

binding  on  the  company,  though  it  has  not  complied  with  require- 
ments of  taw, 60 

PREMIUM  RESERVE  of  life  insurance  companies,  when  to  be  deemed  im- 
paired,   71,72 

new  policies  not  to  be  issued  while, 71,  72 

PRESIDENT.  [See  Penalties,  and  Personal  Liability.] 

PROCESS,  SERVICE  OF.  [See  General  Agent  and  Attorney.] 

PROHIBITIONS,  reciprocal  imposed  on  companies  of  other  States  and  their 

agents, 62,  63 

PROTEST,  false.  [See  Frauds  on  Insurers.] 

PROXIES.  [See  Votes  and  Proxies.] 


13 


254 


96 


INDEX. 

Page. 

RECEIVERS  of  insurance  companies,  may  be  appointed  by  S.  J.  Court  when 


a company  is  insolvent,  or  fails  to  comply  with  laws,  , . 18 

and  when  the  company  is  dissolved,  or  its  charter  expires,  or  is  an-  . ,1 

nulled, 19  ^ ^ 

powers  and  duties  of, 18,  19,  20,  21  ^ 

to  be  subject  to  the  direction  of  the  Court, 18,  20,  21  } 

to  collect  and  pay  debts  and  distribute  surplus, 18,  20 


accounts  rendered  by  to  Court,  to  be  referred  to  Insurance  Commissioner,  21 

may  be  ordered  to  make  a final  report  upon  certificate  of  the  Commissioner,  21 

to  report  annually  or  oftener  to  the  Commissioner,  in  such  forms  as  he 


prescribes, 21 

compensation  of, 21 


RE-INSURANCE,  when  to  be  procured  by  mutual  marine  or  fire-marine  com- 
panies,   

not  to  be  procured  by  foreign  company,  in  companies  not  authorize 

business  in  the  State, 

risks  not  to  be  taken  by  mutual  fire  companies,  with  intention  of  piocur- 

ing, 32 

amount  to  be  charged  company  for,  in  annual  statement  of  directors  to  j 

stockholders,  in  joint-stock  companies, 25,  26  ^ 

amount  of  premium  reserve  required  for  in  life  insurance  companies,  . 71,  72  ^ 

reserve  for,  to  be  considered  a liability,  . . . .26,  29,  33,  35,  41.  45  _ 

RESPONDENTIA,  money  loaned  on  may  be  insured  by  joint-stock  marine  . 

companies, 28 

REVOCATION.  {See  Certificate  of  Authority.] 

RISKS,  what  may  be  taken  by  joint-stock  companies, 28,  54 

[See  Limitation  of  Risks.] 


SALARIES  and  compensation  of  the  Insurance  Commissioner  and  clerks,  . 1 

SCRIP.  {See  Mutual  Marine  Insurance  Companies.] 

SEAL,  corporate,  insurance  companies  may  have  and  change  at  pleasure 
SECRETARY  of  the  Commonwealth,  Commissioner  to  report  vioh 

of  insurance  laws  to, 

to  give  notice  thereof  to  the  Attorney-General, 3 

notice  of  acceptance  of,  and  organization  under  charter,  to  be  given 

to  within  one  year, 6 

Of  insurance  companies,  duties  of  in  regard  to  sale  on  execution  of 

mortgages  held  by  companies, 9 

Secretary  and  Treasurer  of,  to  give  bond, 8 


SECURITIES  of  insurance  companies.  Treasurer  of  the  Commonweath  may 
hold,  to  enable  them  to  comply  with  the  laws  of  other  States,  . 
companies  may  receiv'e  income  of,  and  exchange  the  same, 

SERVICE  OF  PROCESS.  [See  General  Agent  and  Attorney.] 
SHARES.  [See  Joint-Stock  Insurance  Companies,  and  Taxes.] 

SHIPS  OR  VESSELS.  [See  Frauds.] 

STATEMENT.  [See  Annual  Statements.] 

directors  of  companies  to  make,  in  certain  cases,  to  the  Legislature  or  In- 
surance Commissioner, 

companies  not  incorporated  in  this  State,  to  make,  preliminary  to  admis- 


sion,   55 

fee  for  filing  same, . 63  ; 

• ! 


INDEX. 


Pagk. 


STOCK  AND  MUTUAL  (combined)  Insurance  Companies,  if  in  Boston, 

to  have  a guarantee  capital  of  $100,000,  . . • • 41 

in  any  other  city  or  town,  of  $50,000, 41 

capital  how  to  be  paid  in  and  invested, 26,  27,  41 

business  and  investments  in  stock  and  mutual  departments  to  be  kept 


separate, 

separate  annual  statements  to  be  made  for  each  department. 

Directors  to  be  chosen  one-half  from  holders  of  guarantee  stock,  and  one- 


half  from  the  mutual  members, 42 

Secretary  to  keep  a record  of  stockholders,  shares  and  transfers,  . . 42 

special  meetings,  when  may  and  shall  be  called  by  directors,  . . . 42 

risks  in  stock  department  not  to  exceed  one-tenth  of  existing  capital,  . 41 

STOCK  AND  Stockholders.  [See  Joint-Stock  Insurance  Companies.] 
STOCKHOLDERS’  notes  and  other  obligations,  not  to  be  considered  part  of 

capital,  unless  secured,  &c., 41,  53 

STOCKS,  investments  may  be  made  in  what, 27 

SUB-AGENTS.  [See  Certificate  of  Authority.] 

SUBSCRIPTION  TO  Safety  Fund  of  mutual  marine  and  fire- marine  com- 
panies, form  of,  &c., 43 

SUPPLEMENTARY  Annual  Statement.  [See  Annual  Statements.] 
SUPREME  JUDICIAL  COURT,  jurisdiction  and  powers  of  in  relation  to  in- 
surance companies,  their  officers  and  agents,  in  certain  cases,  . 10, 

18,  19,  20,  21 

in  case  of  neglect  to  make  returns  or  pay  taxes,  . . . .16,  17,  65 

in  regard  to  receivers, - 18,  20,  21 

to  assessments  of  mutual  fire  companies, 34-40 

SURPLUS  Funds  of  life  insurance  companies,  when  and  how  may  be  distrib- 
uted among  the  assured, 49,  50 

amount  of  divisible,  how  ascertained,  . . . . . . ' . 49 

of  mutual  marine  and  fire-marine  companies,  how  invested,  divided,  &c.,  45-47 


TAX  COMMISSIONER,  Treasurer  of  Commonwealth  to  be  ex  officio,  . . 13 

powers  and  duties  of  in  relation  to  taxes  on  insurance  companies,  . . 13-17 

TAXES,  Insurance  Companies  incorporated  in  this  State  liable  to  be 

taxed  by  any  general  law  taxing  such  companies,  ...  11 

Fire,  Marine,  and  Fire-Marine  companies  to  pay  one  per  cent,  per  annum 

on  premiums  and  assessments, 11 

premiums  received  in  other  States,  and  there  subject  to  a like  tax,  not 

to  be  taxed  here,  . . . . . . . - . . 11 

tax  on  premiums  and  assessments  defined, 11 

to  make  semi-annual  returns  to  Treasurer  of  Commonwealth,  ...  12 

form  of  returns  defined, 12 

penalty  for  neglecting  to  make  return,  or  making  false  return,  . . 13 

^ taxes  when  and  how  payable, 13 

compan)’ not  paying,  liable  to  suit  and  injunction  until  taxes,  costs 

and  interest  are  paid,  . - 65 

Joint-Stock  companies  to  pay  State  tax  on  corporate  shares  or  franchise, 

provisions  concerning, 13-17 

to  make  annual  returns  to  Tax  Commissioner, 13 

value  of  corporate  franchise  and  real  estate,  how  ascertained,  ...  14 

vf  ’ iou  of  real  estate  by  Tax  Commissioner  conclusive,  unless,  &c.,  14 


INDEX. 


Page. 


TAXES — Continued. 

amount  of  tax,  how  determined, 14 

notice  of  amount  of  tax  and  right  of  appeal  to  he  given  each  com- 
pany,   *.15 

tax  when  payable, 15,  16 

board  of  appeal  established,  proceedings  before, 16 

books  and  officers  of  company  may  be  examined  by  Tax  Commissioner,  . 16 

penalties  for  neglect  to  make  return,  submit  to  examination,  or  pay  tax,  . 16 

remedies  for  collection  of  tax  and  penalties 16,  17 

remedy  of  company  for  exaction  of  alleged  illegal  tax,  ....  16 

local  taxes  not  to  be  assessed  on  corporate  shares,  except,  &c.,  . . 17 

company  not  to  be  exempt  from  other  taxes, 17 


Companies  of  other  States,  fire,  marine,  and  fire-marine,  to  pay 
two  per  cent,  on  premiums  charged,  received  or  colle 

this  State,  &c., 

no  other  tax  to  be  assessed  on,  while  such  tax  is  imposed, 

tax  when  and  how  to  be  assessed  and  paid, 62 

not  pajnng  tax,  liable  to  suit  and  injunction  until  tax,  costs  and  interest 

are  paid, 65 

reciprocal  taxes,  penalties,  obligations,  prohibitions,  &c.,  imposed  on,  . 62,  63 
Companies  of  Foreign  Countries,  fire,  marine,  and  fire-marine,  to 
pay  four  per  cent,  on  premiums  charged,  received  or  collected 

in  this  State,  &c., 62 

no  other  tax  to  be  assessed  on,  while  such  tax  is  imposed,  ...  62 

tax,  when  and  how  to  be  assessed  and  paid, 62 

other  companies  of  foreign  countries  to  pay  a tax  of  one  per  cent,  on  pre- 
miums and  assessments  collected  in  this  State,  ...  63 

[(See  Insurance  Brokers,  Agents  and  Fees.] 

TRANSFERS  of  Shares,  provisions  concerning, 24,  25,  42 

Of  Policies,  provisions  concerning, 24,  ol,  50 

TREASURER  of  the  Commonavealth,  to  hold  securities  of  insurane 
panies,  to  enable  them  to  comply  with  laws  of  other  Sta 

insurance  companies  to  pay  taxes  to, 11,  12,  , 

to  make  returns  to, 12,  13 

to  be  ex  officio  Tax  Commissioner, 13 

poAvers  and  duties  of,  regarding  tax  on  corporate  franchise,  . . 13-17 

agents  of  companies  not  incorporated  in  this  State,  to  give  bond  to,  . 57,  58 

to  make  returns  and  pay  taxes  to, 57,  58 

neglecting,  to  be  notified,  and  penalties  recoA'ered,  by,  . . .59,  60 

to  sue  for  and  recover  certain  taxes,  or  apply  for  injunction,  . . .16,  66 

TREASURER,  Secretary  and,  of  insurance  company,  to  give  bond,  . . 8 

of  mutual  fire  company,  when  personally  liable, 40 

TRUSTEES,  may  become  members,  &c.,  of  mutual  fire  companies,  but  not 

indiAudually  liable.  {See  Executors,  &c.,]  ....  33 


VALUATION  of  life  insurance  policies.  Insurance  Commissioner  to  make 

annually 3 

compensation  of  Insurance  Commissioner  for  making,  ....  1 

actuarial  and  clerical  assistance  employed  in  making,  provision  for,  . . 1 

annual  report  of  Commissioner  to  include  the  results  of,  ...  . 3 

companies  to  pay  as  compensation  for,  one  cent  on  each  SI, 000  insured  on 

liA’cs, 66 


257 


INDEX.  99 

Page. 

VALU  ATION — Continued. 

for  certificate  of  valuation,  fee  chargeable, 66 

assumptions  to  be  adopted  in  making,  certain  cases,  . . .49,  51,  71 

VENUE  OF  Actions  against  companies,  not  to  be  restricted  or  designated 

in  by-laws  or  policies, 7 

VICE-PRESIDENT,  companies  may  provide  for  election  of  in  by-laws,  . 8 

to  be  sworn,  8 

may  sign  policies,  checks,  &c.,  with  same  effect  as  president  or  two  direc- 
tors,   8,  28 

to  perform  such  other  duties  as  are  prescribed  by  by-laws  or  directors,  . 8 

VOTES  AND  Proxies,  provisions  concerning, 8,  23,  24,  30,  43 

WARRANTY,  application  of  insured  or  by-laws  of  company  not  to  be  consid- 
ered as,  unless  incorporated  in  body  of  policy  before  signatures,  72 

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